| As one of the fastest growing industries in China,the pharmaceutical industry has become the mainstay of domestic economic growth.Compared with developed countries such as the United States and Japan,the domestic pharmaceutical industry has the problems of low investment in R&D,high proportion of generic drugs and low profit margin.In order to improve the quality of generic drugs and the overall level of development of the pharmaceutical industry in China,ensure the safety of drug use of residents,and promote the healthy development of the industry towards R&D and innovation,the state issued a consistent evaluation policy for generic drugs,requiring that generic drugs prove to be consistent with the efficacy of the original drug.Based on the current situation of domestic pharmaceutical industry,the impact of generic consistency evaluation policy on pharmaceutical industry is wide and deep,but there is no relevant qualitative and quantitative analysis of the impact of generic consistency evaluation policy on pharmaceutical companies.This paper intends to make a qualitative and quantitative study on the impact of generic drug consistency evaluation on pharmaceutical companies from two aspects: the impact of policy issuance on the stock price of Listed Companies in the pharmaceutical sector and the impact on R&D expenditure of related companies,so as to provide a reference for investors and policy makers in the stock market of China.This paper analyzed the current situation of pharmaceutical industry in China,and analyzed the impact mechanism of generic consistency evaluation policy on pharmaceutical industry and pharmaceutical enterprises.Using the event study method,this paper studies the secondary market performance of the stock prices of Listed Companies in the pharmaceutical sector before and after the publication of the consistency evaluation policy for generic drugs,and finds that the publication of the policy has significant stock price effect.Then this paper uses regression analysis method to analyze and discuss the factors affecting the effect of policy stock price.The results show that the stock price effect of the policy is obvious and the stock price effect changes with time,from positive to negative.The positive stock price effect is the greatest in the six days before and after the policy issuance.The stock price effect changes from positive to negative in the 10 days before and after the policy issuance,disappear in the 12 days before and after the policy issuance.The companies with strong R&D capabilities and pharmaceutical sub-sectors have significant positive stock price effect,while generic companies have significant negative stock price effect.In addition,this paper uses the double difference method(DID)to analyze the impact of generic consistency evaluation policy on R&D expenditure of related companies.The results show that the consistency evaluation policy of generic drugs significantly increases the growth rate of R&D expenditure of related companies,and the average growth rate of R&D expenditure is 23.05% higher than that of companies not affected by the policy.The results of this study can help market investors better understand the response of secondary market to the publication of generic drug consistency evaluation policy,and provide a reference for investors’ decision-making.At the same time,this paper quantitatively analyses the impact of generic drug consistency evaluation on R&D expenditure,and provides a reference for relevant policy makers to formulate follow-up consistency evaluation policies. |
