The Impact Of R&D Expenditure On Corporate Profitability In The Pharmaceutical Industry

The global pharmaceutical industry is focusing on the development of new research and development,partial imitation,and heavy tumors.China's pharmaceutical companies are mostly high-tech enterprises.The high investment,high risk,and long development time lead to industry concentration,R&D investment,and patents.There are deficiencies in talent power and other aspects.In recent years,China's pharmaceutical industry has developed rapidly,but its position in the international market is still relatively tow.Compared with other regions,China's R&D investment has a small proportion,and the degree of protection for product patents is insufficient,which affects the management and market competitiveness of enterprises to a certain extent R&D expenditure,patent protection and the listing of new products play an important role in the pharmaceutical industry.It is not only closely related to human health,but also related to the influence of Chinese pharmaceutical companies in the world.At present,China's pharmaceutical companies will target their targets to the generic drug market.The target risks are stable and the returns are low,which is of little help to the development of enterprises.On the contrary,innovative medicines can bring higher and longer-term benefits to enterprises,but they also have higher human and financial resources and need to reduce strategic risks.The intensity of R&D investment is an important data indicator for measuring the level of innovation and innovation activities of enterprises.Exploring the relationship between R&D expenditure and profitability of listed companies in pharmaceutical companies can provide a basis for the conpany to continue to conservative imitation or risk innovation in the production process.In order to more comprehensively analyze the impact of R&D expenditures on profitability in the pharmaceutical industry,the paper will collate and research related literatures at home and abroad,and qualitatively analyze the relationship between R&D investment and profitability of enterprises through literature analysis;then select 30 pharmaceuticals to be listed.The company conducts descriptive statistical analysis of its R&D expenditures and selected profitability indicators,and lists the median,mode,etc.to reflect the R&D investment and profitability of pharmaceutical companies,and then analyze the statistical data.Find the correlation coefficient and judge the degree of correlation.On the basis of relevant analysis,the pharmaceutical company was selected for case analysis.Descriptive statistical analysis was carried out between the company's R&D investment and profitability by describing the company's basic situation and the interpretation of financial statement data.The advantages of R&D activities,as well as suggestions for raising R&D expenditures from the macro perspective of the government and the micro perspective of the company.