What are Pharmaceuticals?
The pharmaceutical industry discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered to patients, with the aim to cure them, vaccinate them, or alleviate the symptoms. Pharmaceutical companies may deal in generic or brand medications and medical devices.
The US is the world’s leader in research and development (R&D); according to Catalyst Pharma, since 1980, R&D efforts in the country have grown significantly, rising from US$2 billion to US$83 billion as of 2019. Additionally, the US is the largest pharmaceutical market. Prescription drug sales in the nation are also robust, and are expected to reach US$600 billion by 2023, up from an estimated US$500 billion in 2019. Investors interested in this growing industry may want to put their money into companies that could be on the verge of finding new cures or advancing treatments for rare diseases. However, there are many challenges when investing in these companies, and it’s crucial to be aware that time and patience play a large role when it comes to the pharma space. For one thing, it’s important to know that while the biggest pharma companies are pursuing their own pipelines, they are also using partnerships, licensing deals and collaborations to expand drug candidates. AbbVie (NYSE:ABBV), Bristol-Myers Squibb (NYSE:BMY,OTC Pink:BMYMP) and Pfizer (NYSE:PFE) are a few of those players, and can always be counted on as big market stocks available for investors.
When it comes to the life sciences sector, pharmaceutical companies work towards bringing new cures to the market and improving treatments available for patients.
Research on the business plan
As mentioned, the US is the biggest healthcare market globally, and its regulatory agency, the US Food and Drug Administration (FDA), ensures that every medication that is marketed goes through the same organization: the Center for Drug Evaluation and Research (CDER). Essentially, CDER reviews each new therapy before it can be commercialized and sold on the market.