Value Creation And Path Research On Equity Carve-outs Of Pharmaceutical Companies

In recent years,the economic development model has changed from extensive to contractionary,and the marginal benefits of economies of scale are diminishing.In order to reduce investment and financing pressure,enterprises are willing to choose equity carve-outs to redistribute their core resources.However,due to the lack of specific policy guidance,equity carve-outs cases rarely.In December 2019,the China Securities Regulatory Commission issued the "Several Provisions on the Pilot Program for the Carve-outs of Subsidiaries of Listed Companies in China",which clarified the conditions for the carve-outs pilot program and the requirements for decision-making procedures,and the cases of equity carve-outs have gradually increased.In order to solve the financing problem,pharmaceutical companies have also shown a strong willingness to go public.Especially with the further deepening of the reform of my country’s medical and health system,the competition rules and competition models of the pharmaceutical market have changed accordingly.Faced with bigger financing problems,it is urgent to grasp the realization path of value creation through equity carve-outs,and further improve corporate value.Existing researches on equity carve-outs focus on motivation and performance,but have not fully explored the value creation and the realization path of equity carve-outs.Therefore,on the basis of the existing literature,the paper clarifies the value creation and the realization mechanism of equity carve-outs based on the asymmetric information theory,the refocusing strategy and the enterprise life cycle theory,and analyzes Fosun Pharma’s carve-out of Henlius Motivation and process,and use market response,financial benefits and EVA value evaluation indicators to test the short-term and long-term effects of equity carve-outs value creation.From three perspectives,governance and operation,it discusses how equity carve-outs can create value for enterprises,and finally puts forward specific suggestions for realizing the value creation through equity carve-outs from the perspectives of regulatory authorities and the company itself.The study found that the equity carve-outs of pharmaceutical companies are in line with their own strategic development.From a short-term perspective,equity carve-outs have a positive effect on the short-term performance of the parent company,especially for the financial performance of subsidiaries.The realization of creation focuses on later operation and management,clear development strategy and continuous innovation ability.The equity carve-outs achieve corporate value creation through the following paths: weakening information asymmetry,expanding investment and financing channels,and further enhancing the company’s financing capabilities;improving organizational structure,realizing management incentives,and improving governance capabilities;optimizing resource allocation and implementing core operation and increase profitability.Spin-off and listing;spin-off motivation;value creation;value creation path;corporate governance...