A pharmaceutical company earns most of its profits from the drug only at the time during which the drug is effective and it is:

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When a drug is patented, the pharmaceutical company has exclusive rights to manufacture and sell the drug for a certain number of years, typically 20. During this time, the company can charge a high price for the drug, as there is no competition. This period is when the company earns most of its profits from the drug. Once the patent expires, other companies can start manufacturing and selling generic versions of the drug at a much lower price, which significantly reduces the original company's profits. Therefore, the patent is crucial for a pharmaceutical company to make a significant amount of profit from a drug.

A Pharmaceutical Company Earns Most of Its Profits from the Drug