Research On Innovative Drug Price Policy In China

Research on innovative drug price policy is a very important issue in the transition and development of an innovative China and progress of current health care system reform. There are lots of academic researches on drug price policy, but rarely in-depth research on pricing policy of innovative drugs. In this thesis, the concept of innovative drug is related to intellectual property rights no matter whether the drug is in-patent or off-patent, so innovative drugs include patent drugs and off-patent drugs.This thesis tries to conduct empirical study on innovative drug price policy status, reference the advanced management experiences and policy concepts of innovative drug price policy, use basic theories of economics to build the innovative drug pricing model. On this basis, make relevant policy recommendations to improve innovative drug price policy.Firstly, the thesis introduced on innovative drug price policy in Canada, Japan, Australia, UK and France and made a comparative analysis on innovative drug price policy in foreign countries.Secondly, analyze the theoretical basis of government regulation on innovative drug price policy from the perspective of law and economics, and through theoretical research on price and value, it is clear that we should pricing innovative drugs based on its’ value. And based on the characteristics of innovative drugs, the thesis analyze the evolution of market structure for innovative drugs and the evolution of the price mechanismThirdly, this thesis conducts empirical study on innovative drug price policy status in china. Through small sample of international comparisons of innovative drug prices, we find that the absolute price level for innovative drugs is relatively lower while the relative price level is relatively higher than that of foreign countries. Meanwhile, there exist some policy problems for innovative drug pricing, such as unsound pricing method, lack of transparency and predictability, can’t reflect differences in biological products and chemicals and type of drug patents that can be included in patent drug pricing in dispute. Through large sample of price comparison and market shares analysis on off-patent drugs and their corresponding generics, we find that there do exist the problems of price difference too large and the market share for on off-patent drugs too high, this may relate to the disorder of competition in generic market and "drug to compensate medical service" mechanism.Later, according to the current status and problems of innovative drug price policy, learn from international experience in innovative drug pricing and with the guidance of economics theory, the thesis build innovative drug pricing models, and carried out operational simulation.Based on the research, this thesis put forward a number of policy recommendations on how to improve the innovative drug price policy.