Author(s)

Jingdong Yan, and Yuhan Zhang

Corresponding Author

Jingdong Yan

Abstract

Biology and new medicine is one of the eight key high-tech fields supported by China. However, the distribution of China's pharmaceutical industry structure is not reasonable. Therefore, under the new development opportunities, the speed of mergers and acquisitions and expansion among pharmaceutical enterprises will be further enhanced. In the process of merger and acquisition, how to select and evaluate the value of the acquired enterprise is the key link for the enterprise to improve its operation and management level and for the investors to make accurate investment decisions. In this paper, the catastrophe progression method was introduced to modify the current mainstream method of enterprise value assessment -- BS model, and the effective logical combination of the two was conducted. In addition, an enterprise value assessment index system considering non-financial indicators was constructed, and 24 listed biotechnology companies were selected for effective verification.

Keywords

Biomedical enterprises, Enterprise value assessment, Mutation series, Real options