Analysis of value generation in the pharmaceutical subsector. Longitudinal study of value drivers

Abstract

The research analyzes the operational and financial decisions made in companies in the “pharmaceutical products, biotechnology and health sciences” subsector during the years 2019, 2020, 2021 and 2022, to determine which value drivers contributed to the generation of value. A descriptive, quantitative, longitudinal and correlational approach was used, with a sample of 30 companies listed on the Mexican Stock Exchange. EVA was evaluated as an indicator of value generation, and EBITDA Margin, PDC and Tax Shield, as value drivers.

 The results revealed that the subsector experienced significant growth in income and profits during the period studied, especially in the biotechnology branch, which had the highest percentage increase. The pharmaceutical products sector showed the greatest generation of value, followed by health tools and services. The correlation analysis showed that PDC is more positively related to value generation in biotechnology, while EBITDA margin has a strong positive correlation in health tools and services. For the pharmaceutical products industry, none of the value drivers showed a strong relationship with value generation.

 In conclusion, the subsector shows that companies had to adapt, take advantage of growth opportunities and manage their operations efficiently in the face of the atypical years of the period under study. The value drivers varied their impact depending on the industry, which suggests the importance of understanding the specific dynamics of each area in making operational and financial decisio