One of the challenges drug manufacturers face is the cycle of trials to develop innovative therapies. As mentioned, the US is the biggest healthcare market globally, and its regulatory agency, the US Food and Drug Administration (FDA), ensures that every medication that is marketed goes through the Center for Drug Evaluation and Research (CDER). Essentially, CDER reviews each new therapy before it can be commercialized and sold on the market. The new drug approval process requires patience from pharmaceutical manufacturers and investors alike. Importantly, companies must submit an application to the FDA for approval, which can take up to two and a half years. Before this even happens, it can take companies over 10 years to develop a drug and bring it to the market. After a therapy is developed, it goes through more than three years of laboratory testing before an application is made to the FDA. If the FDA gives approval, the drug will then go through three phases of clinical trials. Although some are clamoring for a faster process, an easier barrier to entry for pharmaceuticals could lead to unforeseen reactions or faulty products slipping by the tests from the FDA. Once a new drug reaches clinical trials, pharma companies play a vital role in ensuring the trials are managed efficiently. It's up to drug companies to make sure processes such as enrolling patients and gathering and submitting trial results are done correctly. Each clinical trial has a different length, study participation and purpose, but this begins even before a drug is in a clinical trial. After drug discovery and initial development, the drug is moved into preclinical research before it can be tested on humans. All of this is to say that investors should be ready to play the long game when it comes to investing in pharma companies. Share price dips are common if a company misses a target deadline, or a drug doesn't perform exactly as it was promised during a trial.