The Empirical Study On R&D Investment And Corporate Performance Of Pharmaceutical Listed Companies

For pharmaceutical manufacturing companies,the new drugs and technologies are always the basis for their survival and development,and R&D investment is the driving force and source of technological innovation.Pharmaceuticals have a trillion kinds of products.Some international pharmaceutical companies not only produce medicines but also develop new medicines to solve difficult and complicated problems for human beings.At the same time,these companies also got sufficient economic returns.In China's pharmaceutical market,most of the enterprises have mainly produced generic drugs for a long time.The awareness and R&D investment of the Chinese pharmaceutical companies are very low and their innovation ability is relatively weak.The government had put more emphasis on the development of medical science and technology,the Chinese pharmaceutical companies are in the early stage of transformation from generic strategy to innovative drug strategy.Based to the present situation of R&D investment of listed pharmaceutical enterprises in China,this paper analyzes the importance of R&D investment by using the theory of technological innovation,and summarizes the domestic and foreign research.This paper chooses domestic generic-drug based pharmaceutical manufacturing listed companies and foreign innovative-drug based pharmaceutical listed companies as two groups.Using the R&D investment and financial data published in the annual report of the past three years,we select R&D investment and R&D investment intensity as explanatory variables,and use profitability indicators and growth indicators as explanatory variables.This paper constructs a research model of the correlation between R&D investment and enterprise performance,and studies the relationship between R&D investment and enterprise performance through descriptive statistics,correlation analysis and multiple regression analysis.The empirical results show that the R&D investment of domestic generic drug-based pharmaceutical enterprises differs greatly from that of foreign innovative drug-based pharmaceutical enterprises,but the R&D investment increases in Chinese generic drug-based pharmaceutical enterprises more and more rapidly.There is a significant positive correlation between R&D investment and operating profit of the two groups of data.There is a positive correlation between R&D investment and business income growth rate and Tobin Q value,but there is a certain lag.There is no significant correlation between R&D investment and the growth rate of business income and Tobin Q value for the foreign innovative pharmaceuticals.Therefore,based on the conclusions of this study,it is proposed that for domestic generic-drug based pharmaceutical manufacturing enterprises,need to increase the R&D investment which can effectively improve the profitability and growth capacity of enterprises.The government also needs to increase the strength of innovative drug policy for the domestic pharmaceutical companies and also provides a favorable policy environment for the transformation of innovative drugs.