Research On The Motivation And Effect Of Equity Incentive In Pharmaceutical Contract Research Organization

In recent years,China has continuously deepened the reform of the pharmaceutical industry and encouraged the research and development of innovative drugs.The competition in the pharmaceutical industry has become increasingly fierce.Pharmaceutical enterprises are facing challenges such as increased R&D costs and risks.In order to reduce costs and improve efficiency,more and more pharmaceutical enterprises choose to cooperate with pharmaceutical Contract Research Organization(CRO).As a specialized segment of the pharmaceutical industry,pharmaceutical CRO enterprises provide strong technical support for traditional pharmaceutical enterprises with strong R&D capabilities and professional services.In the process of providing pharmaceutical services,talents have become the core competitiveness and key resources for the development of pharmaceutical CRO enterprises.Equity incentive can not only effectively solve the principal-agent problem,but also attract and retain talents.Equity incentive is gradually widely used in the pharmaceutical R&D outsourcing industry,but there is a lack of in-depth research on the rationality and effectiveness of equity incentive scheme.In view of this,this paper uses the method of combining theory and cases to study the motivation and effect of equity incentive in pharmaceutical CRO enterprises.This paper selects Tigermed,a representative leading enterprise in the pharmaceutical CRO industry,as the research object.Tigermed was listed on the gem in 2012 and launched a multi-phase equity incentive plan to promote the development of enterprises,covering different types of equity incentive models.Firstly,this paper expounds the research purpose and significance,and analyzes the effectiveness of equity incentive in improving enterprise performance through theoretical research;Secondly,this paper analyzes how equity incentive affects enterprise performance from the perspective of direct and indirect influencing factors.On this basis,this paper clarifies the current situation of Tigermed’s equity incentive and the differences of incentive schemes in each period from three perspectives:the implementation motivation of equity incentive,the introduction of incentive scheme and the analysis of incentive elements.Then the implementation effect of Tigermed’s equity incentive is analyzed from the financial and non-financial perspectives,and its implementation experience and existing problems are summarized.Finally,according to the research conclusions,put forward improvement suggestions.Tigermed is a leading enterprise in the pharmaceutical CRO industry.The analysis of its equity incentive situation will help optimize the implementation effect of its equity incentive.At the same time,it can also provide some experience and reference for other pharmaceutical CRO enterprises to implement equity incentive.