| The implementation of health care system reform strongly promotes the development of the pharmaceutical industry. However, Rome was not built in a day. The problems of health care system can not be resolved overnight. The reform will inevitably touch the interests of some industry participants. The research of some foreign scholars also shows that the regulation of prices of pharmaceutical products will have some impact the profitability of pharmaceutical manufacturers, which is contradictory to the booming pharmaceutical stocks from the enactment of the new health reform program.There is much research on the government control of drug prices by foreign scholars from different view of the impact on the pharmaceutical market. But the research on the impact of essential drugs system as a whole to the pharmaceutical companies is few. Since the essential drug system was enacted only one year ago, the domestic scholars still focus on qualitative analysis of essential drug system.This paper has adopted the normative analysis and empirical analysis. Firstly the paper used the Event-Study method to test whether the implementation of essential drug-related policy has significant price effect on pharmaceutical listed companies or not. Then determine the transmission channels of the company's profit impact from the price, quantity, cost, cost aspects by theoretical analysis. Finally test the effectiveness of transmission mechanisms by cross-sectional regression analysis method.Results of this study show that the promulgation and implementation of essential drugs system-related policy has a significant positive effect to A shares of pharmaceutical listed companies. From the transmission mechanism, the price control constitutes a certain pressure on pharmaceutical company profits. However, essential drugs policy has a favorable impact on corporate earnings in sales, costs, production costs. Therefore, on the whole, the effect of essential drug system on the company's earning is still uncertainty. |
