Abstract

In the past few years, there has been a rapid development in China's generic drug market, while the new drug innovation performance is not outstanding. As an effective means to achieve multiple policies for the government, drug price not only maintains the new health reform target of drug accessibility and lower drug costs, but also plays a crucial role in drug innovation incentives. Through the analysis of current situation of Chinese medicine manufacturing drug innovation and existing problems, the authors discussed the role of drug price incentive compensation mechanism in innovation, and proposed the following price incentive strategy, using the pharmacoeconomics evaluation system, into the compensation directory, setting up the mechanism of drug price negotiations and by means of controlling medical costs.

Highlights

  • The Main Part of Drug DevelopmentWith the implementation of the strategy "building an innovative country" in China, the concept of "enterprise is the main body of technology innovation" has reached consensus

  • In the past few years, there has been a rapid development in China's generic drug market, while the new drug innovation performance is not outstanding

  • Through the analysis of current situation of Chinese medicine manufacturing drug innovation and existing problems, the authors discussed the role of drug price incentive compensation mechanism in innovation, and proposed the following price incentive strategy, using the pharmacoeconomics evaluation system, into the compensation directory, setting up the mechanism of drug price negotiations and by means of controlling medical costs

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Summary

The Main Part of Drug Development

With the implementation of the strategy "building an innovative country" in China, the concept of "enterprise is the main body of technology innovation" has reached consensus. From the developing trend of recent five years, the R&D investment of biological medicine high-tech enterprises is growing rapidly, the average annual growth rate is 45%, which is higher than the average level of China's high technology industry 33%. 1 class new drug of biological products refers to the never sold therapeutic biologics or vaccine in domestic and foreign market, 2 class new drug refers to the monoclonal antibody or DNA vaccines, 3 class new drug refers to gene therapy, cell therapy and its products, or the new adjuvants changed from the selling vaccine, the new carrier changed from coupling vaccine It is short of a whole for the Chinese government to control the compensation standard, evaluation, pricing and regulatory scrutiny of innovative drugs. It is mainly manifested in the following aspects, the government didn't do scientific and reasonable evaluation of drug innovation for pricing, and innovative drugs is difficult to be listed by the medical insurance directory

Overall Lack of Innovative Drug Control
The Legal System of Government Pricing Regulation Is Not Sane
The Drug Pricing Policy
The Drug Compensation Policy
The Market Performance of Innovative Drugs
Set up a Scientific System of Pharmacoeconomics Evaluation
Reduce the Barriers for Innovative Drugs to Enter the Compensation Directory
Try to Innovate the Mechanism of Drug Price Negotiations
Use Various Mechanisms of Controlling Medical Costs
Findings
Conclusion

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