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Risks Analysis and Development Prediction in Pharmaceutical Industry: A Case Study of Johnson and Johnson, Pfizer and Roche
- 1 Wuhan University of Technology
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Abstract
Pharmaceutical innovations, including drugs and vaccines, consistently remain a top priority in development and research efforts. The COVID-19 pandemic has further emphasized the significance of drug research and development, prompting a growing number of nations to invest in this field. Governments have increased funding and introduced various incentive policies to stimulate innovation, bolstering the expansion of the pharmaceutical market. As a result, the pharmaceutical sector has evolved into a fundamental economic pillar, closely linked to economic growth, healthcare standards, and the overall well-being of the population. Consequently, economists and investors now pay greater attention to the industry than ever before. Despite the heightened focus on pharmaceuticals, the sector is not without its challenges, with numerous risks presenting obstacles for many companies. Identifying and understanding these risks, developing strategies to overcome them, and determining methods to maintain competitiveness and market share in the future is crucial for the continued success of these enterprises. This paper will focus on the WACC calculation to reckon the risks for Johnson and Johnson, Pfizer, and Roche as examples of pharmaceutical companies, put them down to contrast and predict the development. It shows that Johnson and Johnson owns the highest WACC, while Roche owns the lowest.
Keywords
pharmaceutical industry, innovative drugs, vaccines, COVID-19 pandemic
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Cite this article
Chen,Z. (2023).Risks Analysis and Development Prediction in Pharmaceutical Industry: A Case Study of Johnson and Johnson, Pfizer and Roche.Advances in Economics, Management and Political Sciences,40,68-74.
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