On The Causes And Countermeasures Of IPO Failure In Pharmaceutical Enterprises

The pharmaceutical industry is favored by the capital market for its high growth and adverse economic cycle.More and more pharmaceutical companies are planning to join the IPO.However,due to the special nature of the pharmaceutical industry,the State has adopted a series of policies such as ?two-vote system? and ?consistency evaluation?,and the China Securities Regulatory Commission has adopted a high compression IPO auditing standard.The IPO adoption rate in the pharmaceutical industry has suddenly dropped.And because of the limitations of the pharmaceutical industry itself,such as: policy issues,dealer issues,drug quality issues,and drug research and development capabilities,etc.the rate of attendance is below average.Therefore,how to solve the problem of listing of pharmaceutical companies has become more and more urgent.In order to more accurately understand the failure of pharmaceutical companies' IPOs and put forward specific effective measures for reference,this paper starts from the characteristics of China's pharmaceutical enterprises,combined with the IPO issuance review system,auditing links,and auditing requirements to statistics on the causes of IPO failures of Chinese pharmaceutical companies.analysis.Winner Medical was selected as an example to analyze the reasons for the failure of IPO,put forward relevant countermeasures and put forward corresponding suggestions for the IPO of pharmaceutical enterprises,in order to provide reference for the steady development of the whole industry.This paper statistically analyzes the IPO review of the proposed pharmaceutical company from January 2014 to November 2018,and compares it with the overall audit.It is found that the trend of the IPO audit pass rate of pharmaceutical companies is consistent with the overall audit pass rate,but it has been lower than the overall audit pass rate.Combined with China's IPO audit conditions,the statistical analysis of the reasons for the failure of IPOs in China's pharmaceutical companies found that in addition to the highly concerned subject qualification,independence,normative operation,finance and accounting,continuous profitability,information disclosure,use of raised funds,these seven conventional problems.Due to the particularity of its industry,the pharmaceutical industry will have some issues that need to be focused on,such as commercial bribery,sales models and dealer verification issues,product quality problem,and the impact of medical reform policies.From pharmaceutical companies IPO lowest approval rate in 2017,Select the largest and most profitable Winner Medical as a case study.Through the study of the case,it was found that there are many reasons for Winner Medical IPO failure.Sustainability of profitability: E-commerce sales are becoming larger and larger,which may be heavily dependent on e-commerce customers,and the reasonableness and sustainability of the gross profit margin of consumer goods is higher than comparable gross margins of listed companies in the same industry.Accounting accounting normative issues: reasonable compliance with the confirmation of share-based payment expenses,and the adequacy of the provision for bad debts of accounts receivable.Standardized operational problems: Winner Medical has been repeatedly subjected to administrative penalties by multiple departments.The existence of corresponding defects in the company's internal control system has not played a role in preventing problems before,and internal control is relatively weak.Other issues: There is no comprehensive and detailed disclosure on the issue of delisting from the US Nasdaq privatization and returning to the A-share IPO;no scientific design of the fundraising project is expected,and it is expected that there will be a large capacity to digest the risk and raise funds.The explanation of necessity is not convincing.In response to the above problems of Winner Medical IPO failure,the corresponding solutions are proposed: enhance the company's sustainable profitability,improve the standardization of accounting,improve the standard operation level,pay attention to the comprehensiveness and sufficiency of information disclosure,and plan scientifically and reasonably of the use of funds.And from the nine aspects of sustainable profitability,financial accounting treatment normative,standardized operation,business independence,fundraising projects,information disclosure quality,R&D investment,new medical reform policies,and product quality,relevant suggestions for pharmaceutical companies are proposed.