Research and development is possibly the most important aspect of a successful pharmaceutical corporation. Almost all pharmaceutical companies are putting efforts into curing cancer however, the work is slow and often involves arduous treatment. However, a cure for cancer would revolutionize the medical world and the profit margins for the drug's creator. Today, Basal cell carcinoma is the most common form of skin cancer as individuals are hereditarily predisposition to the disease. However, a mutation of a type of plant is currently undergoing testing at the Children's Hospital Oakland Research Institute in California. It is arguable that should the tests go as planned, Genetech's stock should rise in the near future. In April, the drug was approved for sale and when you look at the stock chart from April to October, it is apparent that right after April, there was a sudden 200% stock value increase (GENE). And despite a decline shortly afterwards in stock value, the stock price is up from $1.00 to $4.00 over a 1 year long period.
This example should explain the vast opportunity for innovation faced by the pharmaceutical industry. Especially in the field of cancer and other seemingly incurable decease.
http://www.nasdaq.com/symbol/gene/interactive-chart?timeframe=1y&charttype=line
http://www.nature.com/nm/journal/v17/n5/full/nm0511-523.html
Stephen Kessler
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