A pharmaceutical company earns most of its drug-related profits during the time that the patent for the drug is effective.

Question

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When a pharmaceutical company invents a new drug, it is granted a patent for a limited amount of time, usually around 20 years. During this time, the company has exclusive rights to manufacture and sell the drug, allowing them to charge a higher price and earn significant profits. Once the patent expires, other companies can produce generic versions of the drug, which typically sell for less and cut into the original company's profits. Therefore, the pharmaceutical company earns most of its drug-related profits during the time that the patent is effective.

A Pharmaceutical Company Earns Most of Its Drug-Related Profits During