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These days, there is much assessment of the value of brand names, intellectual properties, and other intangible assets. In assessment of specific intellectual properties, their value may be equated to the difference in corporate value that their possession affords. This approach, however, cannot be applied to pharmaceuticals and medical devices. The reason is that, although an assessment of intellectual properties can be made from the corporate standpoint and in conformity with accounting standards, pharmaceuticals and medical devices must be assessed from the standpoint of society as a whole.
As such, how should one set about assessing the value of pharmaceuticals and medical devices? In our view, their value can be assessed in terms of enhanced longevity and quality of life (QOL; see Figure 1). This is to say that it is a function of the length of time for which a new drug, for example, extends a user's longevity and/or improves their QOL. Are there any other indices for assessing the value of pharmaceuticals and medical devices? Modifications to dosages to facilitate the intake of drugs by patients may be assessed in terms of an improved QOL. Regardless of area (pharmaceuticals/medical devices), all medical practices can ultimately be assessed with reference to longevity and QOL. The concept of "quality-adjusted life years" (QALYs) enables assessment of value using a single index for these two components. |
Figure 1
What is the Value of Pharmaceuticals and Medical Devices?
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