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| Look like candy crush |
Recently Henry, a fellow Engineer in Facebook interacted with me. Asking what stocks in invested in. I told him pharmaceutical stock. It is a company that produces generic drugs. So what is generic drugs all about. Generic drugs is usually the cheaper version of the "branded" medicine. Here is why?
When can a generic drug be produced?
When a pharmaceutical company first markets a drug, it is usually under a patent that allows only the pharmaceutical company that developed the drug to sell it.
Generic drugs can be legally produced for drugs where: 1) the patent has expired, 2) the generic company certifies the brand company's patents are either invalid, unenforceable or will not be infringed, 3) for drugs which have never held patents, or 4) in countries where a patent(s) is/are not in force.
The expiration of a patent removes the monopoly of the patent holder on drug sales licensing.
Patent lifetime differs from country to country, and typically there is no way to renew a patent after it expires.
A new version of the drug with significant changes to the compound could be patented, but this requires new clinical trials.
In addition, a patent on a changed compound does not prevent sales of the generic versions of the original drug unless regulators take the original drug off the market.
This allows the company to recoup the cost of developing that particular drug. After the patent on a drug expires, any pharmaceutical company can manufacture and sell that drug.
Since the drug has already been tested and approved, the cost of simply manufacturing the drug will be a fraction of the original cost of testing and developing that particular drug.
The Patient Protection and Affordable Care Act, which President Obama signed on March 23, 2010 now authorize the Food and Drug Administration to approve generic versions of biologic drugs and grant biologics manufacturers 12 years of exclusive use before generics can be developed.
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In short , any popular drug patents expiring is a boon to generic drug manufacturers.
Happy Holiday Tomorrow. :D
Happy Holiday Tomorrow. :D
Which stock is that brother? So general your statement.. Pharmaceutical only.. -,-!!
Share la some tips! ha ha
How do I PM you? I already sold it off, if you still interested.
I will buyback some when it dips.
@kampung,
I already send a note to your email that you gave. I don't want to publish your comment with your email acc to avoid you being spammed like hell later on.