Research On Asset Securitization Of Pharmaceutical Distribution Enterprises

In the past decade,the country's increased investment in health care for urban and rural residents and the improvement of people's living standards have led to a rapid growth in the scale of the pharmaceutical market.With the implementation of the two-invoices system,on the one hand,the phenomenon of mergers and acquisitions in the pharmaceutical circulation industry has increased,as well the concentration of the industry.On the other hand,the decline in bargain power has led to a continuously increase in accounts receivable.Therefore,companies need more capital to support day-to-day operations.Some companies have issued asset securitization products due to strategic and financial business incentives.However,there are some problems in this financing method,which deserves further discussion.This paper sorts out the literature and theoretical basis of asset securitization.Based on the principles,analyzing the issues and reasons of securitization of Realcan Pharmaceutical Group.And points out there are two types of problems.First,due to the lack of risk isolation mechanism,bankruptcy isolation cannot conduct effectively.As a result,assets not sold in real terms,which result in the increase of company's liabilities and overall financial risk after securitization financing.In this paper,the transaction structure is optimized,and measures such as sale of the underlying assets to the trust and reduce the risk retention ratio are demonstrated,so that offbalance sheet financing can be realized.Second,due to quality defects of the basic assets,the cost of securitization financing of is higher than loan and other products in the same industry.This paper improves it from the perspective of strengthening the accounts receivable turnover rate and concentration management,comparing the experience of the Jiuintown Pharmaceutical Group to illustrate how to get promoted.In addition,the paper also completes the credit risk management process,adding the sales contract control link to reduce the losses caused by the debtor's default,thus Guaranteeing the creditor's rights of the underlying assets.Combining the theory and practical experience of securitization,this paper hopes that the above problems and solutions can be used as references for the securitization financing of pharmaceutical distribution industry enterprises.