Study of the Company Operational Efficiency of Biotechnology & Pharmaceutical Industries in Taiwan Area

• Main Authors: CHOU CHING HSIU, 鄒靜修
• Other Authors: Wong Jui Tsung
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/15426928473132690057

碩士 === 實踐大學 === 企業管理學系碩士在職專班 === 100 === Along with the world entering the aged society gradually, biotechnology industry (hereinafter refer to as “biotech industry”) has been world-widely recognized as a powerful star industry with great development potential in the future. In Taiwan, biotechnology has been included in the key development projects since 1980s in order to create the energy for biotechnology research and development positively. This study adopted data envelopment analysis (DEA) and financial ratios - DuPont system of financial control for selecting input and output items to discuss the operational efficiency of bio-pharmaceutical companies in Taiwan area based on the cross-section data with reference to relevant biotech industry literatures. The major findings of this study include: 1.According to the results of relative efficiency comparison, 6 companies can serve as benchmarks in technological efficiency and scale efficiency: Yung Shin Pharm. Ind. Co., Ltd., Standard Chemical & Pharmaceutical Co. Ltd., Chunghwa Biomedical Technology Co., Ltd., SCI Pharmtech, Inc., Orient Europharma Co., Ltd., and TTY Biopharm Company Limited. 7 companies are included in the relatively inefficient companies: China Chemical & Pharmaceutical Co., Ltd., Sinphar Pharmaceutical Co., Ltd., Lotus Pharmaceutical Co., Ltd., Synmosa Biopharma Corporation, Center Laboratories, Inc., Nang Kuang Pharmaceutical Co., Ltd. and Chi Sheng Chemical Corporation. 2.The differences between individual companies were analyzed by the slack variable analysis, and it was found that the common factors affecting their performance are as the following: China Chemical & Pharmaceutical Co., Ltd. and Chi Sheng Chemical Corporation: Excessive high cost of goods sold and other operating costs, ineffective R&D expenditure and inefficient utilization of machinery and equipment lead to a lower net operating income. Lotus Pharmaceutical Co., Ltd., Synmosa Biopharma Corporation, and Nang Kuang Pharmaceutical Co., Ltd.: Ineffective R&D expenditure and inefficient utilization of machinery and equipment lead to a lower net operating income. 3.The common factors of the benchmarks’ success in operational efficiency: From the assessment of efficiency value by using the sensitivity analysis, it was known that Yung Shin Pharm. Ind. Co., Ltd., Standard Chemical & Pharmaceutical Co. Ltd., SCI Pharmtech, Inc., Chunghwa Biomedical Technology Co., Ltd., Orient Europharma Co., Ltd., and TTY Biopharm Company Limited are less sensitive to changes in R&D expenses. In other words, those benchmarks have already achieved a certain degree of success in their research and development of products. Also, they have quite low sensitivity toward changes in machinery and equipment. It is obvious that they are able to take full advantage of the machinery and equipment.