Implications of China’s Innovative Drug Investment Bubble

Abstract

As an industry closely related to the physical and mental health of the people, the pharmaceutical industry has a pivotal position. In recent years, with the development of life science, China has vigorously promoted the development of innovative drugs. However, with the outbreak of the epidemic and the downward trend of the domestic economy, the innovative drug industry has been greatly affected, and the bubble crisis in the entire industry has occurred. This paper starts from two aspects. First, by collecting relevant materials at home and abroad and referring to relevant literature, it starts with the status quo and characteristics of the development of innovative drugs in China, compares the market of innovative drugs in foreign countries, finds out the reasons for the investment bubble, and gives solutions to the reasons for the emergence of the innovative drugs industry. Then, it briefly explains the investment mode under the current situation of China’s innovative drug bubble by using Davis’s double-click theoretical valuation method, and finally summarizes the enlightenment of China’s innovative drug investment bubble.