The model parameters (Emax and EC50) can be estimated by fitting the drug conc and effect data to the equation that describes the model.
Emax is a measure of the intrinsic activity of the drug, i.e. the maximum effect that can be achieved by the drug.
EC50 is a measure of the drug potency. Drugs with lower EC50 are more potent than drugs with higher EC50, when Emax is similar.