Innovative Drugs' Pricing Mechanism From The Perspective Of Government's Regulation

Drugs are for the prevention, treatment and diagnosis of disease, regulating physiological function or functions for which indications, usage and consumption. Drugs can be divided into new drugs and generic drugs according to their innovation, which have never been produced in China are new drugs,the others corresponding to the domestic production and use of drugs commonly are generic drugs.there are large divergences between new drugs and generic drugs,such like the cost, technical content,the treatment effect, investment risk and so on,that are the reasons why the Government takes different policies.Innovative drugs are put out based on the new drug price control,which are produced with new scientific principles, technology, or process the invention, making a substantial improvement in clinical efficacy.Over the years, more general provisions of the new drugs have been taken, new drug price control has also undergone a process from the loose to strict, vaguely defined why taking into the current chaotic drug market, "fake drugs" are saw everywhere. The Putting forward Innovative medicines fit the real meaning of the value of new drugs, more emphasis on the value of new innovative drugs.Innovative drugs's price is more expensive as its unique efficacy and targeting,which objectively increased patients'cost. At the same while, because of its high cost and serious information asymmetry, manufacturers of innovative drugs, driven by profits easier to develop a high market price based on market regulation,not only disturbed the normal market order, but also led Patients to enormous economic burden.so direct interventions and regulations must be taken to the innovative drugs' prices,establish and improve the pricing mechanism is the real choice for protectting the masses of our peoples'availability of drugs, ensure pharmaceutical industry to sustained and healthy developped.How to ensure a clear need for government regulations from the theoretical and practical sense and the buildding of our innovative drugs are the outstanding issues in front of us.The paper based on the perspective of government regulation, in particular given the definition of innovative drugs from the drug price on the basis of technical innovation, the failure of market regulation, to enhance the welfare of society and so on,combined with our innovative drugs'status and problems, researches and analysis are based on a number of international major countries and regions such as the United States, Japan and Europe for innovative management of successful experience in drug prices, give ot the frameworks and policy recommendations for our Innovative drugs.which are the direct pricing from the government's active participation,from Government's development,enterprise's feedback,review of price,submit for approval, responsibility for signing, markets'provision and other aspects of the process, constructuring our innovative drugs'pricing system under the supervision of the government.which specific are formulating and improving laws and regulations, establishing experts committee, increasing the level of valuation department, advocated the establishment of automated operating systems, developping innovative drugs'pricing catalog, linkage mechanisms between the registrations and pricing, adhere to the innovative tracking system for international drugs'pricing and so on.