Question

Patent laws and regulatory requirements such as required FDA (Food and Drug Administration) approval to launch new products shield pharmaceutical companies' positions in this slow-cycle market.

Answer 1

Pharmaceutical companies' positions are shielded by patent laws and FDA approval in the slow-cycle market. FDA approval process involves rigorous testing to ensure safety and efficacy of medications.

Step-by-step explanation:

In the slow-cycle market of pharmaceuticals, patent laws and regulatory requirements such as FDA approval play a significant role in shielding pharmaceutical companies' positions. These regulations ensure safety, efficacy, and quality of medications before they are allowed to be sold in the market.

FDA approval process involves rigorous testing, including large-scale experiments using human subjects, to evaluate the drug's safety and effectiveness. This process protects consumers from unsafe drugs, but it can also result in longer time and higher costs for pharmaceutical companies.