This study examines whether the drug permit licenses of pharmaceutical firms are value relevant. The issue of value relevance of accounting information related to intangibles has been discussed in accounting research for several decades. Research hasdemonstrated that information on intangibles is viewed as having positive price implications. A drug permit license is not only an intangible asset, but also represents a source of future economic benefits. Thus, we argue that drug permit licenses provide a clear indication of future revenue-generation which is relevant to investors’ assessments of firm value. Our sample comprises pharmaceutical firms listed on the Taiwan Stock Exchange from 1985 to 2015. We find that stock prices react positively to drug permit license awards. We also find that there is a positive association between drug permit licenses and firm value. Our results indicates that investors view drug permit licenses as a source of future economic benefits in pharmaceutical firms, consistent with drug permit licenses being market-value relevant.