Research On Enterprise Value Evaluation Of Betta Pharmaceuticals Based On Product Life Cycle

The pharmaceutical industry has always been one of the industries that my country attaches great importance to and supports.In recent years,with the strong support of the state,Chinese pharmaceutical companies have increased investment in R&D and devoted themselves to the research and development of new drugs.The innovation capability of the industry has been continuously improved,and it has entered the era of independent innovation from the era of generic drugs.The listing of new drugs will bring excess returns to pharmaceutical companies,which in turn will have an impact on corporate value.Under this circumstance,how to reasonably evaluate the value of pharmaceutical enterprises has become an important issue to be solved urgently.This paper selects the typical case of Betta Pharmaceuticals,takes the future profit forecast of pharmaceutical products as the starting point,and explores the value evaluation of pharmaceutical industry enterprises from the perspective of product life cycle.Enterprise Betta Pharmaceuticals was chosen as the research case because Betta Pharmaceuticals is a company listed on the Growth Enterprise Market and has the typical characteristics of high investment,high risk and high return in the pharmaceutical industry.In addition,before the end of 2020,Betta Pharmaceuticals has only one listed drug,Conmana,and its revenue structure is relatively simple.However,at the end of 2020,the launch of the new drug Conmana had an impact on its revenue structure.It is expected that the generic drug bevacizumab on the market will also bring more uncertainty to the evaluation of corporate value,and its revenue forecast needs to be carried out.In-depth discussion,to provide reference for the value evaluation of similar pharmaceutical industry enterprises.This paper first focuses on the cyclical characteristics of product revenue in the pharmaceutical industry,and on the basis of summarizing the previous literature,expounds the feasibility of analyzing the expected cash flow of pharmaceutical products from a cyclical perspective,and lays a foundation for the subsequent application of product life cycle theory.Then,this paper introduces the case of Betta Pharmaceuticals and its industry – biopharmaceuticals,analyzes the characteristics of Betta Pharmaceuticals from the perspective of financial analysis,and predicts the company’s prospects for Betta Pharmaceuticals.In the specific evaluation process of Betta Pharmaceuticals,this article predicts the future sales revenue of Betta Pharmaceuticals’ products that have already been launched and will be launched relative to the evaluation base date.After the cycle correlation,this paper combines the data of Dawei innojoy patent database to analyze the number of patent changes and cumulative numbers involved in related products,simulate the growth curve to analyze the life cycle ’f the product,and predict the change trend of the future revenue of the product,so as to evaluate the value of pharmaceutical enterprises.This paper finds that the value evaluation of pharmaceutical companies can start from the product point of view,and predict future sales revenue according to the life cycle of a single product,so as to achieve the purpose of evaluating the value of pharmaceutical companies;at the same time,to determine the stages of the product life cycle,the growth curve can be used to simulate pharmaceutical products.The change trend of the cumulative amount of related patents is realized by predicting the change trend of the related patents of pharmaceutical products in the future in the form of a function.This paper expounds and combines the unique characteristics of the pharmaceutical industry,pays attention to the life cycle of pharmaceutical products,uses the life cycle theory to evaluate the value of pharmaceutical companies,and enriches and innovates the previous relevant theories on the evaluation of pharmaceutical industry companies.This will help investors make rational investments in the pharmaceutical industry;it will also help pharmaceutical companies manage their investments in pharmaceutical products and patents rationally,improve their invention management capabilities,and ensure the long-term development of pharmaceutical companies.