EVA-based CRO Enterprise Value Assessment

With the development of society and the advancement of the 13th Five-Year Plan,peopled living standards have been continuously improved,and the demand for medical health has also increased.Drugs are indispensable for people's lives,with the constant advancement of science and technology.People are more eager to use some innovative drugs to alleviate the pain,the country is also strongly supporting the development and production of itnovative drugs.CRO(Contract Research Organization)refers to the technology and talents needed to develop new drugs in the process of contracting with traditional pharmaceutical companies,and assists enterprises with successful drug listing.As a combination of high-tech enterprises and bio-industries,CRO has provided convenience for pharmaceutical companies,accelerated the process of research and development of new drugs,and has become an emerging industry with far-reaching impact on people's healthy lives.Due to the short development history,large development potential and strong profitability of CRO enterprises,the CRO companies themselves have the demand for continuous mergers and acquisitions.In this ease,find a suitable value assessment method for CRO enterprises is necessary.Therefore,this paper chooses CRO companies to conduct value assessment research and analysis.Firstly,this paper makes a detailed introduction to CRO enterprises,and analyses their industry situation,operation mode and value connotation.Then,by comparing the three traditional valuation methods with EVA valuation methods,and considering the characteristics of CRO enterprises,the EVA valuation method is selected to evaluate the value of CRO enterprises.Then,according to the characteristics of CRO enterprises,some pertinent adjustments are made to the EVA valuation model to determine the relevant model parameters suitable for CRO enterprises,and the representative leading enterprise in the CRO industry,Tiger Pharmaceutical,is selected for empirical research.The results show that the EVA valuation method is effective and reasonable in evaluating the value of CRO enterprises,which is comparable to the traditional valuation method.Certain advantages.Through the evaluation results,CRO enterprises can make clear their value sources and overall operating conditions,provide investment advice for investors,and also provide experience and suggestions for the same type of enterprises to evaluate the value of EVA.