The Value Assessment Of Bio-Pharmaceutical Enterprises Based On Real Options Model

With the continuous improvement of the people’s quality of life,the bio-pharmaceutical industry has entered a fast lane of development.At the same time,vaccine safety issues and serious problems in the bubble of biomedical enterprises are constantly emerging.The bio-pharmaceutical industry is characterized by high risks,high technology,and strong features.The traditional enterprise value assessment methods can not be used to assess the actual value of such enterprises.Therefore,how to accurately assess the value of bio-pharmaceutical enterprises has become an important research topic at present.Firstly,this paper combs and summarizes the literatures from four aspects:the influencing factors of bio-pharnaceutical enterprises’ value,the valuation methods of bio-pharmaceutical enterprises,and the evaluation of corporate value and vitality model by real option method.According to the characteristics of bio-pharmaceutical industry,the difficulties of such enterprises in value assessment,the limitations of traditional biomedical value assessment methods and the applicability of real option method,the B-S model in real option method is selected as the paper.In view of the shortcomings of the estimation methods adopted by other scholars lin determining the T index in the B-S model,the vitality model that can better reflect the characteristics of bio-pharmaceutical enterprises.The bio-pharmaceutical enterprises’ characteristic indicators are quantified,and macroscopic data is added to build the model together,to measure the remaining investment time T of the biomedical enterprise,and finally complete the establishment of the evaluation model and measure the value of the bio-pharmaceutical enterprise.This paper selects the bio-pharmaceutical enterprise-Meikang Bio to conduct empirical research,and establishes a vitality model through a total of 527 data from 17 indicators of 31 other bio-pharmaceutical,and estimates the remaining investment time T of Meikang Bio,and bringsit into the BS model.In addition,four other bio-pharmaceutical companies were randomly selected to perform the same steps of the valuation operation to verify the accuracy of the model.The conclusions of the study show that in the evaluation of enterprise value in the bio-pharmaceutical industry,the real option method is more accurate than the traditional enterprise value assessment methods,and the market price is also close to the evaluation result after the benchmark date.And the improvement of the T indicator estimation using the vitality model is effective.This provides new references and ideas for the modernized emerging enterprises in China to use the real option value assessment method.