Chinese Biopharmaceutical Listed Companies Efficiency Research

In recent years, many pharmaceutical companies choose to be listed to raise capital inorder to achieve sustainable development. Employees, shareholders, creditors, securitiesbrokers, senior management, who share a direct interest with the company, have begun toattach great importance to the basic information of enterprises. In view of this situation, thisarticle aims to study the problem about the efficiency of the listed pharmaceutical companiesand further analyze how to better their target value, which is beneficial to deepen the reform ofpharmaceutical companies in China and improve their efficiency as well as profitability.Therefore, it has great theoretical and practical significance.Firstly, the efficiency of pharmaceutical companies is defined in this paper, thennonparametric and parameter method used for measuring the efficiency of it are compared andthe function form of efficiency measurement is put forward. The empirical research wascarried out on technical efficiency and scale efficiency by using data envelopment analysis.There are67listed biological pharmaceutical corporation in the nationwide in2009～2011selected as samples, with total assets, shareholders’ rights and interests, and cost of the mainbusiness as input variables and with the rate of return on net assets, the main business revenueand earnings per share as output variables. The results show that, on the whole, technicalefficiency and scale efficiency are declining in biopharmaceutical listing corporation of ourcountry from2009to2011, which is badly in need of optimizing structure of input and outputand the scale of the company to improve its efficiency.Secondly, an empirical study on profit efficiency of the listed pharmaceutical companiesin our country is conducted by using the stochastic frontier analysis. The results show that, onthe whole, profit efficiency is going down gradually in biopharmaceutical listing corporation of our country, which is closely related with reducing the rate of its return as a result of theexcessive pursuit of enterprise scale In addition, from the perspective of the ranking in thoseregions, profit efficiency of biopharmaceutical listing corporation is higher in the eastern coastthan other areas so there exists regional characteristics of the level of efficiency amongbiopharmaceutical listing corporations.Finally，from the dimensions of the technical efficiency, scale efficiency and policy, somesuggestions are proposed to enhance the efficiency of listed pharmaceutical companies.