Research On The Influence Of Volume Procurement System On The Intrinsic Value Of Listed Pharmaceutical Companies

In 2018,China’s medical reform entered a landmark stage of deepening medical reform.The State Council established the National Healthcare Security Administration,a full-time medical reform work,and opened the prelude to the national centralized drug procurement with the "4+7" city pilot,which fundamentally changed the phenomenon of inflated drug prices in China for the first time.However,in this process,it also breaks the original competitive advantages of major pharmaceutical enterprises in the pharmaceutical industry,reshaping the competitive pattern of the industry,and then causes the change of the intrinsic value of listed pharmaceutical companies.Therefore,to study the way and degree of the impact of the volume procurement system on the intrinsic value of listed pharmaceutical companies,and to explore the difference in the impact of volume procurement,can remind investors to examine the current investment direction of the pharmaceutical sector,and also provide a basis for pharmaceutical enterprises to deal with the system changes.This paper follows the idea of comparative analysis of multiple cases,selects three listed companies,Xinlitai,Huiyu Pharmaceutical and Wowu Biology,which belong to the pharmaceutical industry but have differences under the impact of volume procurement system,and applies the fundamental analysis and valuation model to the case study of specific companies.Firstly,to analyze the implementation status of the volume procurement system and the impact on the pharmaceutical industry,and analyze the changes on the basis of the intrinsic value of the case company,and then apply the counterfactual thinking to evaluate the intrinsic value of the company under the background of the intrinsic value of the case through vertical comparison within the case and horizontal comparison across the cases.The research results show that:(1)the intrinsic value of listed pharmaceutical companies;(2)the intrinsic value of the enterprise through the influence of the enterprise;(3)the influence of the internal value of the quantity procurement depends on various factors such as company size,purchase quantity and price reduction.Finally,provide targeted suggestions for pharmaceutical enterprises and investors:(1)on the one hand,pharmaceutical enterprises should enrich their product structure and enhance risk resistance;on the other hand,they should attach great importance to the research of bidding strategy to win the bid.(2)Risk-averse investors should pay attention to pharmaceutical enterprises that are not affected by volume procurement,to avoid the turbulence of the industry pattern;risk-preferring investors can pay more attention to the successful winning in procurement.