The Research Of How To Introduce Private Equity Investment To Domestic Pharmaceutical Enterprises

With the worsening domestic aging population and theimplementation of the new health care reforming, the pharmaceuticalindustries’ profit margins and sales growth will remain at a high level.The capital spent in research and development of drugs, even circulationis huge. So effectively financing is vital to pharmaceutical enterprises atvarious stages.In last decade, private equity investment (PE in short) becomespopular. Investment scale major in equity stake and the existence periodvaries from five to ten years, PE tend to provide a more stable financialsupport for pharmaceutical companies to meet their financing needs.This article is standing from the angle of pharmaceutical companies,combined with the characteristics of the industry. The essay analyzes theallocation of resources in the industry and the causes of the allocationpattern as well. Introduce the evaluation system of PE investors in thecase studies. The main purpose is trying to help companies understand theconcept of value assessment better and how to improve their operatingconditions.With the advice given by the essay, the companies may attract theideal private equity investors to finance them. Meanwhile it will helppromoting the efficiency of capital allocation within the pharmaceuticalindustry.