DEFINITION of 'New Indications'

A term used by medical companies and professionals to signify that a procedure or drug has been recognized to be advisable or necessary. New indications refer to new applications of an existing prevention, diagnosis or treatment of a disease. It is a positive report provided by credible professionals through established testing techniques. The next step is usually clinical trials before official approval by the country's regulatory association.

BREAKING DOWN 'New Indications'

News releases on medical treatments and pharmaceutical companies often use the term new indications when referring to drugs or equipment. For example, drug company ABC could announce the new indication for Drug Z. This would signal a potentially higher demand for drug Z because of forecasted additional uses on top of previous ones. This could also signal the underlying company's potentially higher share value.

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