Asian Journal Of Social Pharmacy

Abstract: Objective To study influential factors on profitability of pharmaceutical manufacturing enterprises in China so as to provide references for pharmaceutical enterprises. Methods Factor regression analysis method was used to analyze the influential factors of R&D capital investment, enterprise scale, and R&D knowledge output on the profitability of pharmaceutical manufacturing enterprises based on the data of pharmaceutical manufacturing enterprises in China Statistics Yearbook on High Technology Industry and Statistics Yearbook on Science and Technology Activities of Industrial Enterprises from 1995 to 2015. Results and Conclusion Factors, such as new product market demand (0.076), enterprise competition (0.070), research and development of human knowledge reserve level (0.036), exports (0.028), enterprise scale (0.023), government funding (0.019), R&D investment (0.017), and output of R&D (0.015) had significant positive correlation with profitability. Some suggestions were put forward for the improvement of profitability based on the empirical study results.

Key words: pharmaceutical manufacturing, profitability, factor analysis, influence factor