Sunday, June 16, 2024
HomeHealthcareMeasuring the newness of latest medicine – Healthcare Economist

Measuring the newness of latest medicine – Healthcare Economist

All people need new, progressed medications. Medicine that supply incremental advantages (frequently referred to as “me too” medicine) are just right, however in reality modern remedies are even higher. On the other hand, how does one separate how “novel” a remedy is? Is there a method to quantify this?

In truth there may be. A technique to do that is in response to the remedy’s molecular construction. As an example, the Tanimoto distance measures the the fraction of chemical options which are shared through the 2 chemicals. Nikolova et al. 2004 summarizes this manner which is calculated as follows:

Krieger, Li and Papanikolau 2022 use this strategy to quantify how drug construction for novel medicine has a lot more sure informational spillovers at the drug construction than incremental medicine. This paper supplies an instance of an software of Tanimoto distance under.

The use of the Tanimoto distance as a measure of novelty, the authors to find the next:

…novel drug applicants are much less prone to download FDA approval however are in response to extra treasured patents. In line with a easy fashion of pricey exterior finance, we display {that a} sure surprise to companies’ internet value leads companies to broaden extra novel medicine. This means that even huge companies might behave as even though they’re possibility averse, decreasing their willingness to funding in doubtlessly treasured radical innovation.

You’ll learn the total paper right here.



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