Research On Financial Support Of Pharmaceutical Industry Development In Hainan Province

Pharmaceutical industry was known as one of the world’s three major sunrise industries in the21st century. The development of pharmaceutical industry can not only promote the growth of a country’s GDP, but also related to the national economy and strategic industries. In recent years, the pharmaceutical industry shows its outstanding performance under the shadow of the world economic crisis, and tends to a momentum of rapid development so that gets the significant attention from academics and the government. In this case, our government has classified the pharmaceutical industry as one of the "twelve five" plan to support the industry key layout. After30years of development, the total industrial output of Hainan province pharmaceutical industry, increased from46million Yuan in1988to10.695billion Yuan in2013. It has grown to become a quality industry with advanced infrastructure, extensive marketing network, certain research and development capabilities and industrial base. Government supported large enterprises while eliminated small business, resulting in a number of the country’s leading pharmaceutical brands appear, such as Hainan drugs, Honyaradoh, and a number of famous pharmaceutical products come out, such as the famous crack capsules, then forest, ribavirin injection, injection Thymopentin and so on. Currently it has been formed to "Haikou Medical valley"core area industry gathering area.Currently pharmaceutical market is an open market but its competition intensified. Pharmaceutical companies must to improve their own competitiveness if they want to have their own position. Then technological innovation ability of pharmaceutical companies often determines the value of the enterprise, is a manifestation of the core competitiveness of the pharmaceutical companies. However, technological innovation and new product development faces huge funding needs, according to experts statistics, a completely independent research and development of innovative drugs to market from an average of at least ten million to thirty million funding around. The financial problem has been one of the important bottlenecks of Hainan pharmaceutical industry forward. But the question is how this problem arises and how to solve. In this paper, the financial problems of pharmaceutical industry in Hainan Province were deeply discussed.By studying the development status of Hainan pharmaceutical industry and financing circumstances, and analyzing the bottleneck of restricting Hainan pharmaceutical industry. This essay finds the difficulty of Hainan pharmaceutical industry financing dues to the particularity of pharmaceutical industry, like large funding demand, high investment risk etc., coupled with the Hainan itself underdeveloped capital markets and money markets, direct financing difficulties; bank and information asymmetry, leading commercial banks lack of credit support to the pharmaceutical industry; affected by the overall economic restraint Hainan government support industries limited; pharmaceutical companies lack the ability to finance itself and other issues still exist. The fourth chapter of the article will analyzes the United States, Japan advanced pharmaceutical industry financing models provide a reference for the pharmaceutical industry in Hainan Province, to explore the development of advanced models. In the end it will give the conclusion that a series of industrial policy measures and financial support to meet the specific circumstances of Hainan Province, seek promote the optimization of Hainan pharmaceutical industry through financial support strategy to become an important support Hainan green rise.