In: Economics
Patents are granted for 20 years, but pharmaceutical companies cannot use their patent-guaranteed monopoly powers for anywhere near this long because it takes several years to acquire the Food and Drug Administration (FDA) approval of drugs.
Explanation:
the pharmaceutical industry is one of the most sensitive industries owing to the fact that they produce products that directly affect the lives of consumers. this makes a lot of interest to be developed in it as a result as the government is not willing to risk the lives of people at the expense of the lives of people.
the patent's rights of the pharmaceutical industries are therefore restricted so as to ensure the quality of the product which is released in the market for use and this is also aimed at making the market highly restricted for entry of other firms.