Investing in medical stocks
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| FDA - Medical Stocks |
In this article, we will explain to you the most important terms used in the follow-up of "medical stocks", that is, those based on the drug industry, by displaying abbreviations that are used daily, then we will explain to you the stages of obtaining the drug by the company.
- PDUFA is the FDA's Food and Drug Administration review day.
- CRL means drug refusal and a complete response letter.
- Approval means approval of the drug.
- Phase means a phase of medication.
- NDA stands for New Drug Application.
- Clinical Trials.
- Type A meeting means to clarify the defect in the PDUFA within 30 days of the request.
- Type B meeting means to clarify the defect in stages 1,2,3 within 60 days of ordering.
- Type C meeting means clarifying any reason other than the above within 75 days of the request.
Stages of obtaining drug approval
We find that investing in medical companies is a source of great profit in the American Stock Exchange and others, but we must understand the steps that the drug goes through until the final approval by the FDA, it may take years, so there is no need to rush to enter and buy shares in a company that may be in its infancy.
In the same context, we find that 70% of companies exceed stage 2, and 33% exceed stage 3. Here are the stages that the company goes through during obtaining approval for any new drug.
The initial stage: the drug is tested on animals, and if it succeeds, the following important stages begin.
- Phase 1 lasts several months and measures drug side effects.
- Phase 2 lasts from months to two years and measures the effectiveness of the drug.
- Phase 3 lasts from 1 to 4 years and measures the side effects and efficacy of the drug.
- Review Results are reviewed for approval from 6 to 10 months.
- Phase 4 lasts from 1 to 4 years and measures the long-term side effects of the drug.
Therefore, you should be careful about entering into medical stocks and know all the information before buying.
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