Research On The Phenomenon Of "Two High And One Low" In Pharmaceutical Enterprises And Its Governance

With the continuous advancement of China’s medical reform,the social requirements for the pharmaceutical industry are also getting higher and higher.Due to the particularity of pharmaceutical enterprises,their resources are more concentrated in the sales field.The capital investment of R & D activities in China’s pharmaceutical industry is far lower than that of sales activities,and the R & D expense rate is low,leading to the low competitiveness of China’s pharmaceutical industry.High sales costs lead to inflated drug prices.Although it can improve the gross profit margin of enterprises,it also greatly affects the expansion of enterprise profit margins.In addition,there will be the possibility of squeezing the R & D expenditure of enterprises,resulting in the weak innovation ability of enterprises.Through the analysis of the cost structure of pharmaceutical enterprises,it is found that there are "two high and one low" phenomena with high sales cost,high gross profit margin and low research and development cost.This paper chose the model of the pharmaceutical industry: Shandong Buchang pharmaceutical Co.LTD(also known as "Buchang Pharma")as a case,with related theory as a research basis,from the medical reform and high quality development background,in recent five years gross margin,sales,research and development expenses as the research object,to explore Buchang Pharma "two high and one low" phenomenon.By analyzing the current situation of its cost structure,we can explore the background and reasons of its "two high and one low" phenomenon from the perspective of external environment and the enterprise itself.Through the analysis,it can be seen that the phenomenon of "two high and one low" in pharmaceutical enterprises can cover up the internal control defects of enterprises,reduce the innovation power of enterprises,lead to inflated drug prices,increase the burden of the public,and hide medical corruption and compliance management risks.In order to promote pharmaceutical enterprises from marketing-driven to innovation-driven development mode,this paper puts forward relevant governance measures from both macro and micro aspects,such as standardizing the disclosure of sales expenses,strengthening the control of medical corruption,fine management of sales expenses,cooperation with scientific research institutions,and strengthening their own research and development level.Improving the cost structure of pharmaceutical enterprises will help them improve the internal control system of sales expenses,improve the attention to research and development activities,and promote the healthy development of pharmaceutical enterprises in China.