Investment Programs. Hong Ruiji Gdf Capsule. Comparative Study

Based on the internal and exterior environmental analysis of the investment priorities of GDF capsules of the HongRui fund, a comparative study is made between four investment priorities of the project that are devised through the research and development of the medicine, different segments of production and commercial circulation and the distinction between the self-operated business and sales through other distributors of each segment. The future cash flow of the four investment priorities is not only predicted accordingly, but also optimized with the adoption of the internal increment yield and EVA method. The research period of the project is considered to be 11 years, and with calculation, the forth investment priorities has more investment return and a higher efficiency of capital appreciation with the internal rate of return as high as 52.5%, the payback period 3.27 years, and an average of EPA rate 28.4%. It is certified through the research that the domestic medicine industry is currently within the stage of "post-GMP era'; which is manifested by the general surplus of the capability of medicine production. Therefore, proceeding from the segment of medicine marketing and focusing on "sub-contract production and self-operated sales", the forth investment priorities becomes the most suitable choice for the project, and provides a sound reference for the final investment decision of GDF capsules.