Food And Drug Administration - FDA
 |
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 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
Articles Of Interest
-
Top 4 Most Scandalous Insider Trading Debacles
Here we look at some of the landmark incidents of insider trading. -
Using DCF In Biotech Valuation
Valuing firms in this sector can seem like a black art, but there is a systematic way to pin a price on potential. -
Should You Buy Stock Or An ETF?
Not all investors are the same. By the same token, not all investment types are suited for each individual investor. -
Evaluating Pharmaceutical Companies
Learn how to find a healthy pharmaceutical investment in a market full of weak drugs. -
A Primer On The Biotech Sector
Investing in the biotech sector can involve both huge losses and major gains. -
Getting Through The Medicare Part D Maze
Having trouble sorting through your prescription drug coverage options? We offer some solutions to the confusing process of selecting the right Medicare Part D coverage for you. -
Pharmaceutical Sector: Does The FDA Help Or Harm?
We look at how the FDA affects the pharmaceutical industry, and how investors can avoid the pitfalls. -
What Does Medicare Cover?
Don't assume you're insured. Find out what you can expect from this healthcare program. -
Why did the Department of Justice launch an inquiry into the sale of ImClone shares in 2001?
On December 28, 2001, the FDA announced that it was rejecting ImClone's new cancer drug, Erbitux. The drug represented a major portion of ImClone's pipeline, so the company's stock took a sharp ... -
Pharmaceutical Phenoms: America's Best-Selling Medicines
These three drugs were the winners of their day. Find out what winning pharmaceuticals have in common.
Free Annual Reports