The Biological Pharmaceutical Companies Financing Structure Of Research In China

Biological pharmaceutical in the pharmaceutical field occupies more and more important position, which in recent years developed very rapidly. Of the pharmacyeutical industry not only has the potential to create a large nummber of jobs, but also to investors has brought huge economic returns. World countries, especially developed countries in the West are seen as strong economic growth points to key support. China and Western countries particularly the United States compared to the development of biotechnology drugs with high input, high-risk, high-yield characteristics. Therefore, difficulties, in financing have become China's impact on the development of bio-pharmaceutical industry the one of the key factors.In addition to it's financing of capital investment involved, there is a financing mechanism is the problem.Therefore China's biopharmaceutical companies solve the problem of financing, with a focus on enabling their development of new financing mechanism.In this paper, the biopharmaceutical industry and financing of related concepts were also discussed, and related literature to sort out. The following Myers on the Pecking Order Theory model of development was introduced. Here analysis of China's listed biopharmaceutical company's capital structure and financing, on the order of the trade financing.This article is based on the focus of China's listed companies of their own characteristics, which the use of Pecking Order Theory model to empirical analysis of biopharmaceutical companies listed on the financing of the order.The following results——Chinese bio-pharmaceutical industry financing of listed companies is the order of preference:the external financing priorities in the internal financing. In external financing, companies give priority to equity financing, followed by choice of debt financing. (Specifically:equity financing, commercial bank credit, business credit financing, retained earnings and financial financing.)Through the use of comparative analysis methods, China and the United States, the European biopharmaceutical companies listed on a comparative study on the financing structure. The following analysis of enterprises in the financing structure for the beginning of China's biopharmaceutical companies financing difficulties factors.