Analysis Of Investment Risks On Developing Bio-Pharmaceutical Products

This paper proposed one way to analyze and control investment risks on new products of the bio-pharmaceutical industry, which is involved in developing new pharmaceutical. Specifically it deals with things such as: Dividing investment risks into several risk factor of certain specialized fields with AHP ( Analytic Hierarchy Process ) so as to make full use of professional knowledge and experience; Analyzing all kinds of out-coming professional comments and estimates on every risk factor with simple and practical clustering analysis so as to improve the accuracy of such analysis; Monitoring the investment risks in new projects using that risk index to reflect the state of risk. This paper analyzes ten sorts of risk factors from four aspects concerning investment in bio-pharmaceutical projects and illustrates the calculating processes and methods relating the risk index through case studies. This method can provide enterprise for policy-making with index figure that reflect objectively the risk state of projects and help them control pharmaceutical project risks in their new products investments.