Study On Value Evaluation Method Of Biopharmaceutical Industry

In recent years,the biopharmaceutical industry has developed into a new industry and belongs to the state's key supporting industries.The state provides policy support for the industry through several major special projects.Domestic and foreign industrial capital has also entered this field in recent years.and the amount of merger and reorganization has been innovating high and high.Therefore,the innovation of biopharmaceutical industry value evaluation method,can effectively improve the company's valuation accuracy,can play the role of staff assistant for domestic and foreign mergers and acquisitions in China enterprises,to help Chinese companies to develop domestic and international markets,and promote cross-border mergers and acquisitions,so as to promote the development of China's industry and international to enhance the competitiveness.In this paper,on the basis of' research and Analysis on the valuation theory,methods and models are summarized and the detailed analysis summary.The theoretical basis,assumptions.advantages and disadvantages,applicability and difficulties in application of' various valuation methods are studied.Based on the analysis of the characteristics of biophanrmaceutical industry,it is suggested that the income approach and the market approach should be selected for the valuation of the industry,and the scenario analysis method is introduced into the valuation process of the biopharmaceutical industry,and the accuracy of the valuation is further improved.On the basis of theoretical research and comparative analysis,this paper takes Hua Lan BIO(Hua Lan Biological Engineering,inc.)listed company as an example,using the multi view mode valuation and comparing with the actual performance of the company stock,and finally confirms that the income approach and market approach under the multi scenario mode is the most accurate.The innovation of this paper lies in the analysis of probability scenario model based on the value evaluation process into the biopharmaceutical industry,through theoretical analhysis and case analysis on the valuation method,determine the biopharmaceutical industry valuation scenario can be used under the mode of income approach and market approach two kinds of methods of valuation.It is suggested that the valuation process should be based on the income approach and the market approach should be supplemented.Through theoretical research and case analysis,the relative reasonable valuation methods of biopharmaceutical industry companies are as follows:(1)Both the income approach and the market approach are applicable to the valuation of the listed and unlisted companies of biopharmaceuticals.(2)The income approach should be used as a preferred method of valuation,and market approach can be used as a test method.The FCFF model used in the valuation process of Hua Lan BIO is more suitable for the valuation of biopharmaceutical enterprises,and the final valuation is more accurate.(3)By the scenario analysis method should be the valuation process,to fully consider the various scenarios for the future development of the enterprise,and for each situation were enterprise value assessment,then considering the probability of each scenario occurs after the assignment of the comprehensive valuation,to further increase the accuracy of the valuation results.Through theoretical research and empirical analysis,this paper shows that when evaluating the value of biopharmaceutical industry,the valuation of multi view mode will greatly improve the accuracy of valuation,which is very practical for the promotion of M&A in the industry.Moreover,the theory has opened up a new way of thinking for the evaluation of enterprise value,and it can also provide reference for the value evaluation of other industries.