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.

RELATED TERMS
  1. Drug

    A substance that cures, treats, prevents or reduces the symptoms ...
  2. Orphan Drug Credit

    A federal tax credit that provides an incentive for pharmaceutical ...
  3. New Drug Application (NDA)

    The final step formally taken by a drug sponsor, wherein it applies ...
  4. Abbreviated New Drug Submission ...

    A written request to Health Canada to obtain marketing approval ...
  5. Orange Book

    A list of drugs that the U.S. Food and Drug Administration has ...
  6. Phase 2

    The second phase of clinical trials or studies for an experimental ...
Related Articles
  1. Investing

    Pharma Balks at German Price Control (BAYRY, RHHBY)

    Drug makers are worried about a proposed new German law that would tighten price controls on prescription drugs.
  2. Investing

    Using DCF In Biotech Valuation

    Valuing firms in this sector can seem like a black art, but there is a systematic way to pin a price on potential.
  3. Personal Finance

    Supplemental Indications: The Promising Pharma Stream (GILD)

    While supplemental indications can lead to more revenues and wider treatment options, they may add substantially to the drug cost for the end patients.
  4. Investing

    Evaluating Pharmaceutical Companies

    Learn how to find a healthy pharmaceutical investment in a market full of weak drugs.
  5. Insurance

    The Cancer (and Other Drug) Shortage

    Your doctor may not tell you, but even in the U.S., life-saving drugs can be in short supply. Here's what to know and do.
  6. Investing

    Drug Prices: Name Brands Doubled in Last 5 Years (ESRX)

    Express Scripts' Drug Trends Report, released Monday, revealed that the average price of brand name drugs rose 16.2% in 2015, with over one third of brand name drugs seeing price increases over ...
  7. Insights

    Why Drug Prices Keep Rising & How to Fight Back

    Despite pushback from politicians and disgruntled consumers, the cost of drugs keeps going up. Is there any relief on the horizon?
  8. Retirement

    How to Pick the Best Medicare Part D Plan for You

    In choosing a Medicare Part D plan, here’s a helpful step-by-step guide to what you need to know to get the drugs you need at the price you can afford.
  9. Financial Advisor

    8 Hacks for Scoring Cheaper Prescription Drugs

    The rising cost of prescription drugs has caused many patients to scramble for funds. Here's what you can do to help clients lower pharmacy costs.
  10. Insights

    Drug Prices Gone Wild: Hospitals Feel Pain of Increases

    Hospitals and patients are suffering as prices soar for both branded and generic drugs
RELATED FAQS
  1. What are the primary risks associated with investing in the drugs sector?

    Learn more about the primary risks facing investors in the pharmaceutical and biotechnology industries. Find out how regulation ... Read Answer >>
  2. What is the drugs sector?

    Learn more about the drug industry and how new drugs are brought to market. Find out about how drug research is financed ... Read Answer >>
  3. What process does a company need to follow to bring a new drug to market?

    Learn about the costly price of bringing new drugs to market. Discover why the pharmaceutical industry invests billions of ... Read Answer >>
  4. How does government regulation impact the drugs sector?

    Learn about how drugs are regulated by the U.S. government as well as the role of the Food and Drug Administration during ... Read Answer >>
  5. What are the major barriers to entry for new companies in the drugs sector?

    Find out why barriers to entry for U.S. drug companies are so high and how the Food and Drug Administration, or FDA, inhibits ... Read Answer >>
  6. Can your insurance company drug test you?

    Learn why drug companies conduct drug tests and how a lifestyle free of drugs and alcohol can save you big money on health ... Read Answer >>
Hot Definitions
  1. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  2. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the ...
  3. Border Adjustment Tax

    A tax levied on goods based on where they are sold – exported goods are exempt from tax; those imported and sold in the ...
  4. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
  5. Blind Trust

    A trust in which the trustees have full discretion over the assets, and the trust beneficiaries have no knowledge of the ...
  6. Job Openings and Labor Turnover Survey - JOLTS

    A survey done by the United States Bureau of Labor Statistics to help measure job vacancies. It collects data from employers ...
Trading Center