Food And Drug Administration - FDA

Dictionary Says

Definition of 'Food And Drug Administration - FDA'

A government agency established in 1906 with the passage of the Federal Food and Drugs Act. The agency is currently separated into five centers, which oversee a majority of the organization's obligations involving food, drugs, cosmetics, animal food, dietary supplements, medical devices, biological goods and blood products.
Investopedia Says

Investopedia explains '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.

Related Definitions

  • Social Security Administration - SSA

    A U.S. government agency created in 1935 by President Franklin D. Roosevelt, the SSA administers the social insurance programs in the United States. The agency covers a wide range of ...
    Read More »
  • Medicare

    A U.S. federal health program that subsidizes people who meet one of the following criteria: 1. An individual over the age of 65 who has been a U.S. citizen or permanent legal resident ...
    Read More »
  • Medicaid

    A joint federal and state program that helps low-income individuals or families pay for the costs associated with long-term medical and custodial care, provided they qualify. Although ...
    Read More »
    • Medicare Part D

      A prescription drug benefit program that was created through the U.S. Medicare Prescription Drug, Improvement, and Modernization Act of 2003. The "D" stands for "drugs". The program ...
      Read More »
    • Household Expenses

      A per person breakdown of general living expenses. It includes the amount paid for lodging, food consumed within the home, utilities paid and other expenses. The sum of all the expenses ...
      Read More »
    • Federal Communications Commission - FCC

      An independent U.S. government regulatory agency responsible for overseeing all interstate and international communications. The FCC acts to maintain standards and consistency among the ...
      Read More »
    • New Indications

      A term used by medical companies and professionals to signify that a procedure or drug has been recognized to be advisable or necessary. New indications refer to new applications of an ...
      Read More »
    • Credence Good

      A type of good with qualities that cannot be observed by the consumer after purchase, making it difficult to assess its utility. Typical examples of credence goods include expert ...
      Read More »
    • Consumer Product Safety Commission - CPSC

      A U.S. government agency that protects the American public from products that may create a potential hazard to safety. The Consumer Product Safety Commission focuses on consumer products ...
      Read More »

Articles Of Interest

Partner Links