Research On Drug Safety Supervision In China Based On Principal - Agent Theory

In our modern society, the drag is already familiar to people, it has become an effective tool to alleviate their pain and suffering.Drugs have different characteristics, it means for diagnosis, prevention and treatment of human disease, purposefully regulate physiological function and regulation have indications or attending functions, usage, and dosage of material.It can achieve the curative effect of combination of prevention and cure through pharmacological effects and has certain promoting effect to the health of patients. Each medicine corresponding to a kind of disease, and have targeted effect, taking different drugs at the same time or drug abuse is likely to be life threatening.So for the people, it is very important for the safe use of drugs. Drug safety is directly related to the rapid development of economy and society, and also is closely related to regulation. So in order to ensure drug safety, effectiveness, appropriateness and economy, the drugs development, production, management, sales, use the whole process of supervision is very necessary.Promulgated by relevant state departments formulate, drug management laws, regulations, and the drug standards, quality assurance system of drug quality and pharmaceutical affairs institution of mandatory supervision and management. Since the20th century, countries around the world have the drug supervision and management through the legislative authorization form gives the government health authorities.Principal-agent theory is introduced in the drug safety supervision, must first clear the relevant stakeholders involved. General representative stakeholders can be divided into the general medicine (regulators), consumers, government and the regulated enterprises (drug manufacturer), to form a multi-level supervision chain, namely "regulators-consumers-government regulated enterprises" multiple principal-agent structure.So we can see many of the main body involved in the drug safety supervision, there is a complicated principal-agent chain.Aiming at some problems in the pharmaceutical industry in our country, the theory of principal-agent and related application, which has certain positive meaning.This paper for the drug safety supervision elaborates the related theory, based on the status quo of drug safety regulation in China and the European Union, the United States the experience of developed countries, with principal-agent perspective of China’s drug safety supervision link the various stakeholders in the main body, and defined as multiple principal-agent relationship, through the analysis of drug safety regulation in the relationship among different interest subjects to found problems in the principal-agent chain, aims to design an effective incentive compatibility mechanism to enhance drug safety supervision, only to do these can we really make people enjoy the medicine, rest assured the benefits of conscience.