Abstract: OBJECTIVE To research the application of Black-Scholes pricing model (B-S model) of real options in the evaluation of new drug R&D projects. METHODS The comparison method was applied to analyze advantages and disadvantages between real options and traditional methods, such as cost-based method, market comparable method and DCF. The DCF method and B-S model were used to calculate the value of new drug R&D projects respectively, and the results were compared. RESULTS The value of new drug R&D project calculated by B-S model was larger than that of DCF. CONCLUSION B-S model can reflect the underlying flexibility value of projects effectively, and the choice of parameters will have a great impact on the results.