Research On Securitization Financing Of Receivables Of Pharmaceutical Enterprises

Innovating financing models to better serve the real economy is one of the important topics that the academic community and industry have paid special attention to in recent years.At the end of 2014,the securitization product business was changed from an approval system to a filing system,and securitization of accounts receivable,as a new financing method for physical enterprises,has also been rapidly developed.Among them,the pharmaceutical industry is particularly active in the use of receivables securitization products.The characteristics of the pharmaceutical industry have a good fit with the receivables securitization financing model,which is the main reason why this financing method is favored by more pharmaceutical companies.At present,the discussion on the feasibility and applicability of the receivables securitization financing model to serve the real economy has also attracted the attention of many scholars.However,most of the existing literatures conduct research on the transaction structure,practical application and credit risk of securitization of accounts receivable,and rarely analyze the advantages and risks of financing companies using this financing tool.In particular,there are no companies based in the pharmaceutical industry that carry out targeted research.In view of the lack of these studies,this article will combine the characteristics of the pharmaceutical industry to study the feasibility and applicability of the use of receivables securitization financing methods by pharmaceutical companies from two aspects of comparative advantage and risk control.This article first sorts out the current status of China's pharmaceutical companies'use of receivables securitization,and clarifies the external policy drivers for pharmaceutical companies' choice of receivables securitization as a financing tool.Then,from the theoretical level,it analyzes the advantages of using securitization of accounts receivable as a financing tool and the internal and external risks that the pharmaceutical companies may face in the implementation process.Finally,taking the receivables securitization product issued by the pharmaceutical company Kyushu as an example,the advantages and risks of using the financing tool of the company were specifically analyzed.The results of the study show that:(1)Overall,pharmaceutical companies use the innovative financing tool of receivables securitization,which has both obvious advantages and certain risks.The advantages are mainly reflected in the three aspects of reducing the financing cost of the pharmaceutical industry,optimizing the capital structure,and revitalizing the accounts receivable;and the risks mainly include the risks of basic asset recovery period,concentration risk,financial risk and system risk.(2)The case analysis of the ARBS of Kyushu Tong also shows that compared with equity and bond financing,the advantage of securitization of accounts receivable in reducing financing costs is particularly obvious;but the average recovery period of accounts receivable of Kyushu is longer 3.The regional concentration is high,and it is necessary to focus on controlling and managing the risk of the recovery period and concentration risk of basic assets.At the same time,the complexity of the circular purchase structure and the decline in short-term solvency are likely to cause financial risks,and companies also need to prevent the occurrence of financial risks.