Food And Drug Administration - FDA
The FDA is renowned for its work in regulating the development of new drugs. The FDA has developed rules regarding the clinical trials that must be done on all new drugs. Currently, pharmaceutical companies must test drugs through four phases of clinical trials before they can be marketed to individuals. Every year the FDA monitors the testing of 3,000 new drugs on nearly 200 million people to determine their effects. In 2006, the proposed budget for the FDA was approximately $1.8 billion. The FDA is relevant for investors specifically in regards to biotech and pharmaceutical companies. FDA approval can literally make or break the stock of a small company involved in developing new drugs. It is very common to see the stock of these companies skyrocket (or plummet) as test data is released.
Investment dictionary. Academic. 2012.
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Food and Drug Administration — A federal agency of the Department of Health, Education, and Welfare … Ballentine's law dictionary
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