New Indications

AAA

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.

INVESTOPEDIA EXPLAINS '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. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  2. Medicare

    A U.S. federal health program that subsidizes people who meet ...
  3. Research And Development - R&D

    Investigative activities that a business chooses to conduct with ...
  4. Patent

    A government license that gives the holder exclusive rights to ...
  5. Price-To-Innovation-Adjusted Earnings

    A variation of the price-to-earnings ratio (P/E ratio) that takes ...
  6. Food And Drug Administration - ...

    A government agency established in 1906 with the passage of the ...
Related Articles
  1. Fighting The High Costs Of Healthcare
    Home & Auto

    Fighting The High Costs Of Healthcare

  2. Using DCF In Biotech Valuation
    Investing

    Using DCF In Biotech Valuation

  3. Evaluating Pharmaceutical Companies
    Fundamental Analysis

    Evaluating Pharmaceutical Companies

  4. Pharmaceutical Phenoms: America's Best-Selling ...
    Insurance

    Pharmaceutical Phenoms: America's Best-Selling ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center