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Title: INVESTIGATING THE IMPACT OF PROFITABILITY ON THE STOCK PRICES OF SELECTED PHARMACEUTICAL COMPANIES- PRE AND POST IPA 2005 IMPLEMENTATION
Authors: Ankur Jangir and Kuldeep Singh Rathaur
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Ankur Jangir1 and Kuldeep Singh Rathaur2 1,2. Research Scholar, Department of Economics, University of Rajasthan, Jaipur.
MLA 8 Jangir, Ankur, and Kuldeep Singh Rathaur. "INVESTIGATING THE IMPACT OF PROFITABILITY ON THE STOCK PRICES OF SELECTED PHARMACEUTICAL COMPANIES- PRE AND POST IPA 2005 IMPLEMENTATION." Int. j. of Social Science and Economic Research, vol. 9, no. 3, Mar. 2024, pp. 689-707, doi.org/10.46609/IJSSER.2024.v09i03.004. Accessed Mar. 2024. APA 6 Jangir, A., & Rathaur, K. (2024, March). INVESTIGATING THE IMPACT OF PROFITABILITY ON THE STOCK PRICES OF SELECTED PHARMACEUTICAL COMPANIES- PRE AND POST IPA 2005 IMPLEMENTATION. Int. j. of Social Science and Economic Research, 9(3), 689-707. Retrieved from https://doi.org/10.46609/IJSSER.2024.v09i03.004 Chicago Jangir, Ankur, and Kuldeep Singh Rathaur. "INVESTIGATING THE IMPACT OF PROFITABILITY ON THE STOCK PRICES OF SELECTED PHARMACEUTICAL COMPANIES- PRE AND POST IPA 2005 IMPLEMENTATION." Int. j. of Social Science and Economic Research 9, no. 3 (March 2024), 689-707. Accessed March, 2024. https://doi.org/10.46609/IJSSER.2024.v09i03.004.
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ABSTRACT: Analyzing the profitability and stock performance of pharmaceutical companies is crucial in understanding their resilience and growth potential within the global economy. This study examines the effects of the Patents (Amendment) Act of 2005 on the stock prices of 15 major pharmaceutical companies in India, leveraging paired t-tests and multiple regression analysis. The Act, following India's adherence to the TRIPS agreement, brought significant changes to the country's patent system, impacting the pharmaceutical sector profoundly. The selected pharmaceutical firms represent key players in the Indian market, influencing industry performance significantly. By comparing stock prices before and after the enactment of the IPA 2005, this study delves into the relationship between a company's profitability and its stock performance. The result shows a significant increase in the stock prices of the companies under study and also state that profitability of a company greatly affects the stock price of these companies. The findings offer valuable insights for investors, policymakers, and industry stakeholders, shedding light on the intricate dynamics of the Indian pharmaceutical market and its response to regulatory changes in intellectual property rights.

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