Analysis and Reflection on Investment Status of Innovative Drugs in China

Doudou Hao

doi:10.54097/q1taex26

Authors

Doudou Hao

DOI:

https://doi.org/10.54097/q1taex26

Keywords:

Innovative drug; Investment status; China policy; Investment market.

Abstract

At present, China's innovative drug support policies and market volume are good, but China's innovative drug research and development(R&D) success rate and market share still need to be improved. This is related to the unreasonable investment direction of innovative drugs and the low utilization efficiency of R&D resources. Therefore, the objective of this paper is to evaluate China's present state of investment in innovation drugs and explore how to promote the effectiveness and sustainability of innovative drug investment. Through data analysis, this paper found that the scale and frequency of investment and financing of innovative drugs in China are declining. The problem with China's innovative drug investment is that the valuation of hot projects is too high, the allocation of funds is unreasonable, the investment is not in line with the actual needs of the industry, and only the pursuit of short-term returns. Given the various problems in China's innovative drug investment, the government needs to create a long-term stable environment for the innovative drug investment market and prudently formulate relevant policies to strike a balance between stimulating the market and regulating the market. Entrepreneurs should choose the direction of R&D according to their areas of expertise combined with cutting-edge scientific research progress rather than adjusting the direction of R&D to cater to the preferences of investment institutions. Investment institutions should avoid risks caused by unreasonable capital allocation by strengthening the layout of the pre-investment track and prudently carrying out project valuation analysis.

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