Evaluation Of The Value Of New Drugs

With China’s reform and opening up in recent years, the pharmaceutical industryhas made great progress. Drug research and innovation support the development ofthe pharmaceutical industry, and become one of the main ways to get a competitiveposition in markets. China’s annual technology transfer amount is about ten billion, sothe studies on the evaluation of new drug are important both in theory and practice.New drug possess high cost and high accession which play decisive roles invalue of new drug, because of the high-input, high-tech, high-risk, long-cycle andcomplicated-progress new drug’s R&D. This paper divide the research cycle to threeparts, aims to systemic analyze the formation, influencing factor and evaluation ofnew drug’s value by theories and methods as Marxism economies, intangible assetvaluation theory and asset valuation theory. The study points out the value of newdrug is formed by four elements: basic value, technology value, functional value andeconomic value, which are impacted by the cost research, function, the technologicalvalidity, related policy and the market factors of new drug. After comparing with thetraditional methods of evaluation, the study supports valuing new drug in differentstages with different methods and introduce income method particularly. Adjustingincome method for new drug and analyzing how to determine the parameters, thestudy puts in an actual case to instruct the process, key factors and manners needingattention about evaluation of new drug.The study involves seven parts, clears the influencing factors of evaluation onnew drug, modifies the traditional income method, and quantifies the effection causedby the influencing factors in order to make the modle of income method more suitablefor evaluation on new drug. Case analysis in this paper reflects the guidance of thetheoretical research to practical application, endues the modified income methodsignificance in practice. Consequently the paper systematically clarifies the main theories and viewpointsof the evaluation on new drug, and explores the issues about the evaluation of newdrug.