A Study on the Business Scope and Market Evaluation of Biopharmaceutical Industry in Taiwan
|關鍵字:||經營項目;市場評價;財務報表分析;Business Scope;Market Evaluation;Analysis on Financial Report|
Biotechnology has been included as one of the eight main technologies in Taiwan since 1982. In 2016, when new government established, Biopharmaceutics was even listed as one of the most important supporting industries in the future. In recent years, the number of listed companies and the market value of biotech stocks have grown year by year. Most of the R & D companies contribute to new medicines have lost their earnings, yet the share price hits their record highs all the time. This attracts more venture capital and capital market concern. In August, 2013, the issue of food safety on Top Pot Bakery, uncovered an event that Genome International Company’s backdoor listing and stock speculation, though with the name of biotech, actually it’s nearly a tourism and restaurant stock, and which made investors suffer heavy losses. Hopefully through this case study, we may offer some information to help investors to reduce their risk, by inspecting the similarities and differences of the business items of biopharmaceutics industry, and its financial characteristics and operating results. Furthermore, to realize its reason behind market evaluation. To develop new medicine is a high-risk business. It takes long process of research and development, with much financial support. We shouldn't just consult EPS. Therefore, I sorted out four indicators of estimation via case analysis in this study: Indicator I- Whether the government is involved in this investment or not: With government’s participation, it will be high market evaluated. Indicator II- Get to know its business model through its operational items: Single business item usually has higher market evaluation. Indicator III- Evaluate its research and development capability through its R & D projects and persistence: Higher R & D capability gets better market evaluation. Indicator IV- From the internationalization of market to see its potential in the future development: More international competitiveness wins better market evaluation. Hope these could help investors to clear the mist of biotechnology, and find the potential biotech stocks. And expect these firms could turn their price-to-dream ratio as price-earnings ratio, and at the same time, could really develop the medicine change human’s fate and benefit patients all over the world.