Pfizer Inc. (PFE), Eli Lilly & Co. (LLY) & Other Names To Know: A Full Breakdown

There’s no standard for when a company switches from one name to another. Some biotech companies start using brand names while the drug is still in development while others wait until the drug has been approved by the FDA.

Waiting has its advantages; the FDA has been known to reject brand names, usually because they’re too close to a current drug name. The agency wants to avoid prescriptions being filled incorrectly because of doctor’s messy handwriting.

VIVUS, Inc. (NASDAQ:VVUS)‘ Qsymia, for instance, was originally called Qnexa. The biotech company took awhile to get its sales people in place after approval, so it probably didn’t have a bunch of manufacturing and sales materials with Qnexa on them printed before the approval. But all the branding opportunities as the drug worked its way through the drug development process were wasted. A Google search for Qnexa on Google results in about 610,000 hits!

The article Investing in Biotech Companies? Know These Names! originally appeared on Fool.com.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Gilead Sciences.

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