EVA, PDC and Tax Shield in the Biotechnology Sector, from 2019 to 2022

Abstract

The research addresses the interaction between value creation and its drivers in the pharmaceutical field between 2019 and 2022, highlighting the relevance of Economic Value Added (EVA) and other factors as drivers of financial performance and sustained development in this sector. The objective is to determine the correlation between value creation and value drivers in companies in the biotechnology sector from 2019 to 2022. Through a quantitative and longitudinal approach, the study examines data from biotechnology companies listed on the Mexican Stock Exchange, highlighting a significant increase in their revenues and profits, which reflects sustained growth in the study period. However, the correlation between value creation and specific drivers such as the growth lever and the tax shield shows inherent complexity, with effectiveness varying due to external factors and sectoral particularities. This analysis confirms the value of EVA as a comprehensive performance measure, underscoring the need for financial and operational management adaptive to the challenges of the biotechnology sector.