Asian Journal Of Social Pharmacy

Abstract: Objective To explore the influence of new drug R&D investment and sales expense on the performance of biomedical enterprises. Methods The financial statements of 76 listed biomedical enterprises for 5 consecutive years were selected, and the data were modeled to study the effect of R&D investment and sales expense on the performance of biomedical enterprises by using financial indicators as tools and statistical methods of multiple linear regression. Results and Conclusion Under the premise that the weak related factors such as enterprise scale, life cycle and asset-liability ratio are set as unrelated variables, the R&D investment intensity of biomedical enterprises is negatively correlated with the current performance, which also shows that the R&D of biomedical enterprises has the characteristics of high risk. Besides, the influence of early R&D investment is delayed. However, the sales expense of leading biomedical enterprises with large scales have higher proportion. Meanwhile the greater sales expense of the same enterprise in different periods, the better the enterprise performance is. Biomedical enterprises should consider their own development stage to develop more patented drugs. Besides, they must formulate plans for allocating reasonable sales personnel and cost expense to ensure that enterprises can obtain better benefits.

Key words: biomedical enterprise, enterprise performance, R&D expenditure, sales expense