Case Study On Patent Value Evaluation Of RG Hypoglycemic Drugs Based On Option Pricing

Biopharmaceutical industry is the leader of patent securitization,as the global pharmaceutical giant drug patents gradually expire,stimulating the rapid entry of pharmaceutical companies into the market.All along,most Chinese pharmaceutical companies can only manufacture generic drugs,at the low end of the supply chain,only a few pharmaceutical companies can use their own technology to develop and operate new drugs,so when evaluating the value of new drugs,there is a lack of reference cases in the market.The drug development process requires a lot of upfront investment,long clinical trials and the risk of high probability of failure.Therefore,it is of great significance to find an accurate evaluation method of new drug research and development.This paper,based on option pricing theory,uses binary tree option pricing model,combines practice with theory to evaluate the RG value of new drugs developed by DY company,and concludes that the influence of this uncertainty feature in drug value evaluation can be reduced by using binary tree option pricing model.This paper first expounds the current situation of literature research at home and abroad,and lays a theoretical foundation for the later discussion of the binary tree option evaluation model.Secondly,the applicability of binary tree option pricing model in drug value evaluation is discussed in light of the problems existing in the evaluation of patent value of drugs in China.After that,the RG drugs in the case are revalued by the binary tree option pricing model,and the results are compared with the results obtained by the traditional evaluation method,which are explained according to the difference between the two and the principle of the binary tree option pricing model,and the rationality of applying the binary tree option pricing model is verified.Finally,through the analysis of the full text to draw conclusions :(1)the income method and the binary tree option pricing method have some applicability in the evaluation of new drug value :(2)in the final valuation result,the binary tree option method has higher evaluation value than the traditional income method.More accurate evaluation of the value of new drugsUsing binary tree option pricing method to evaluate value as a new way of evaluation provides a new direction for the value evaluation of new drug research and development projects with high risk uncertainty.