Performance Evaluation Of Chinese Pharmaceutical Listed Companies Based On DEA And Malmquist Methods

Pharmaceutical industry is one of the most important industries in China.Its good performance could also demonstrate the healthy economy development.For the pharmaceutical industry,in addition to drug research and development to improve business performance,improving business management ability and embracing the change brought by the medical reform are also important for the pharmaceutical enterprises to improve business performance.The reasons can be summarized as follows:the medical reform policy guides the development of hospitals,whose modes of drug purchase and pricing have a direct impact on the sales channels and profits of pharmaceutical enterprises due to its big customers position of pharmaceutical companies,it is of great significance to locate the policy orientation and actively respond to achieve the improvement on performance.Based on panel data from 2012 to 2017,this paper uses DEA investment-oriented model and Malmquist index method based on DEA method to analyze the operating efficiency of 106 listed pharmaceutical companies in China,and to understand the development trend of listed pharmaceutical companies in recent six years and their performance in 2017.Empirical results show that the pure technical efficiency of the whole industry is low in 2017,in another word;the enterprises management has encountered difficulty.In 2017,without other factors changing significantly,the application of the "two invoice system" is one of the important factors affecting the enterprise management efficiency.After the "two invoice system" was implemented,some enterprises fail to make timely adjustments to meet the requirement brought by the new policy.But before the implementation of the "two invoice system",the same enterprise management system was effective.Furthermore,this study analyzed the changing situation brought by the implementation of the "two invoice system" to the pharmaceutical industry,mainly the change focused on business model.Previous business model is as sales to multi-level distributors by low prices,these multi-level distributors will be responsible for the promotion of drugs,and there is a distributor cheating risk,which is prohibited by national tax policy.Later,the mode changed to sell to unique distributor at high prices to eliminate the cheating risk.Meanwhile,the promotional services will be purchased from service providers.In response to such changes,this paper puts forward corresponding countermeasures,including a careful interpretation of policy changes,understanding the changes in business models,so as to actively and accurately deal with the problems of dealer management,as well as the actively tax planning for products prices change and the pricing of promotion service.It is hoped that this study will provide some reference for the future development of pharmaceutical companies.