Research On Real Options Model In The Assessment Of The Value Of Bio-pharmaceutical Enterprises

China’s biomedical industry started late,the biomedical industry has a high technological threshold and a large capital demand,and the investment of China’s biomedical enterprises in technology,equipment,personnel and capital is obviously insufficient compared with the well-known foreign pharmaceutical enterprises,which hinders the development of China’s biomedical industry.However,in recent years,with the development of China’s economy,the change of living environment,the change of people’s health concept,the acceleration of the aging process and other factors,as well as the gradual improvement of the medical security system and breakthroughs in biomedical technology.With the rapid development of China’s biomedical industry,the industry sales revenue keeps increasing,and the proportion of biomedical output value in the pharmaceutical industry continues to rise.In China,the pharmaceutical industry is in a critical period of transformation and improvement.The state has promulgated many policies to guarantee and cultivate this emerging industry,but in addition,the healthy and sustainable development of biomedical enterprises cannot be achieved without the correct evaluation and guidance from the market.Therefore,the establishment of an accurate and practical enterprise value evaluation system that conforms to the actual situation of China’s biomedical industry and evaluates its enterprise value more accurately and appropriately has an important impact on the development of this industry.The cost method,market method and income method are mainly adopted in the enterprise value evaluation of biomedical industry in China.These traditional methods are mainly to analyze and utilize the financial data on the enterprise statement,or to find similar comparable enterprise cases in the market to evaluate the enterprise value.However,for biomedical enterprises,the traditional cash flow discount method and simple cost sum method are still used in the domestic evaluation practice.Compared with traditional enterprises,biomedical enterprises have many characteristics of their own,and their value evaluation is also special.Some traditional enterprise value evaluation methods are not directly applicable,and thevalue will have a big deviation.As the representative of high-tech industry,the value evaluation of biomedical enterprises has its own unique characteristics.The future earnings of enterprises often depend on the current r & d projects,which are characterized by long cycle,large investment capital and significant ratio of intangible assets,thus causing uncertainty of risks and earnings and volatility of value.Due to the influence of uncertainty in various aspects,the decision level of managers and the choice of investment opportunities are crucial to the development of enterprises,but the traditional methods cannot reflect this part of value well.The real option method can reflect the value of r&d projects in biomedical enterprises,quantify the flexibility and uncertainty of relevant decisions,fully consider the management flexibility in r&d projects and the potential value brought by investment opportunities in the development of enterprises,so as to accurately calculate the actual value of enterprises.This article first chapter first discusses the paper selected topic background,research significance,the domestic and foreign literature review and the paper frame structure and so on,the second chapter briefly introduces the biological pharmaceutical enterprise,the enterprise value evaluation,real option theory,the third chapter divides the biological medicine enterprise value for the existing asset value and potential project value,and according to these two aspects respectively to analyze its applicability evaluation characteristics,methods,etc.,thereby on the basis of the traditional discounted cash flow technique,combining with the real option pricing method,build a set of biological medicine enterprise overall value assessment model,and carries on the empirical analysis selecting fosun medicine,in the last chapter,Made a roughly introduces the fosun medicine first,and then use the discount cash flow model of two-phase model to evaluate the value of existing assets,on the basis of using the real option pricing model of B-S model to evaluate the value of potential projects,and finally calculate the value of whole enterprise,and analyzes and compares two kinds of results before and after the results.In by comparing the traditional discounted cash flow model and real option pricing model combined with the discounted cash flow model to evaluate theenterprise value analysis,get the discount cash flow model will underestimate the biological medicine enterprise value,will ignore the potential projects that part of the value of the real option method can well reflect the value of this part of the,will be closer to the market value of the enterprise.This proves the applicability of real option method in biomedicine.