Research On The Performance Of Reverse Merger And Listing Of Pharmaceutical Enterprises

With the rapid development of China's capital market,the market competition is increasingly fierce,as the main market enterprises hope to seek new financing channels through listing,and further expand the scale of enterprises in order to seize market share.As one of the ways of listing,reverse merger listing has the characteristics of short time and low cost,and has become the preferred way for many unlisted companies.Reverse takeover listing refers to that the non-listed company obtains the control right of the listed company as a shell company through the form of share acquisition,so as to achieve the purpose of listing.Through this behavior,enterprises can not only realize the rapid listing to solve the problem of shortage of funds,but also realize the optimal allocation of resources,ensure the rapid expansion of capital,and achieve the strategic development goals of enterprises.However,there are still a series of problems such as the transaction benefit is not as expected,the integration effect is not good,and the performance is lower than the target expectation.Therefore,it is of great significance to study the performance level of reverse merger after listing.Since 2013,a large number of pharmaceutical companies have entered the capital market through reverse merger and listing,especially in 2015,a wave of pharmaceutical companies went public,which is closely related to the status quo of the pharmaceutical industry.With the aging of the population and the improvement of living standards,the increasing medical expenditure has promoted the development of China's pharmaceutical industry,which has witnessed a remarkable growth rate and ranked second in the market size of the world.However,compared with the growth rate,the number of enterprises in China's pharmaceutical industry is large,the scale of enterprises is small,the research and development expenditure is high,the competition is fierce and other phenomena restrict the growth of the industry.In order to realize their own development and avoid being eliminated by the market,more and more pharmaceutical companies seek to go public for capital assistance,and reverse merger with lower threshold has become the preferred option.Firstly,this paper uses literature research method to explain the theoretical concepts related to reverse merger and listing.Based on the current situation of reverse merger in the pharmaceutical industry,this paper summarizes the common characteristics and performance of reverse merger and listing in the pharmaceuticalindustry.Secondly,with the successful listing of Shanxi Bikang as a case,the industry background and listing process of both sides of the transaction are explained in detail,and the motivation of listing is deeply analyzed.Thirdly,with the help of the data platform to collect relevant information and important data of the case,the financial index analysis method and event research method were used to deeply study the impact of the listing on the performance of Shaanxi Bikang.Finally,the corresponding conclusion is drawn through the analysis: the market performance of Shaanxi Bikang after the reverse merger is listed reflects significantly,and the listing has a positive promotion effect on its financial performance,but the effect needs to be improved in the long run.Based on the above conclusions,this paper puts forward some Suggestions on how to attach importance to the business integration after the listing of reverse merger and how to reasonably prevent financial risks.