Publicação
The impact of the COVID-19 pandemic on the pharmaceutical industry: The determining factors to ensure the profitability of the sector
| Resumo: | The COVID-19 pandemic affected health and economies all over the world, and there was a tremendous effort within the pharmaceutical and biotechnology industry to pursue a prevention vaccine or cure. Soon enough, many began to query how much would this industry benefit from it. That is precisely what this dissertation aims to investigate. By making a quantitative analysis, using linear panel regression with random effects estimation techniques and a dataset containing information on 1622 global pharmaceutical and biotechnology companies covering the period from 2012 to 2021, this research explores the determinants of profitability of these companies under the context of the COVID-19 pandemic. On one hand, the relationship between internal factors, such as firm size, leverage, and R&D investments, on the firm’s profitability was investigated, and on the other hand, the impact of the COVID-19 pandemic on profitability was studied. Findings from this research suggest that the profitability of this sector is influenced by the firm’s size, leverage, and R&D expenses. Firm size has a positive impact, whereas leverage and R&D investments negatively influence profitability. Nevertheless, contrary to the media and public expectations, the pandemic seems to have negatively impacted these firms’ performance. However, the results show a positive impact of the development of both vaccines and treatments for COVID-19 on these firms’ profitability, meaning that, as anticipated, the development of COVID-19 products resulted in a profitability improvement. This dissertation meets the call for further research and provides new conclusions on the determinant factors of the profitability of this sector. |
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| Autores principais: | Brito, Carolina da Gama Castel-Branco e |
| Assunto: | COVID-19 Rentabilidade -- Profitability Firm-specific determinants R&D investments Pharmaceutical and biotechnology sector Determinantes da rentabilidade Investimentos em I&D Sector farmacêutico e biotecnológico |
| Ano: | 2023 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | ISCTE |
| Idioma: | inglês |
| Origem: | Repositório ISCTE |
| Resumo: | The COVID-19 pandemic affected health and economies all over the world, and there was a tremendous effort within the pharmaceutical and biotechnology industry to pursue a prevention vaccine or cure. Soon enough, many began to query how much would this industry benefit from it. That is precisely what this dissertation aims to investigate. By making a quantitative analysis, using linear panel regression with random effects estimation techniques and a dataset containing information on 1622 global pharmaceutical and biotechnology companies covering the period from 2012 to 2021, this research explores the determinants of profitability of these companies under the context of the COVID-19 pandemic. On one hand, the relationship between internal factors, such as firm size, leverage, and R&D investments, on the firm’s profitability was investigated, and on the other hand, the impact of the COVID-19 pandemic on profitability was studied. Findings from this research suggest that the profitability of this sector is influenced by the firm’s size, leverage, and R&D expenses. Firm size has a positive impact, whereas leverage and R&D investments negatively influence profitability. Nevertheless, contrary to the media and public expectations, the pandemic seems to have negatively impacted these firms’ performance. However, the results show a positive impact of the development of both vaccines and treatments for COVID-19 on these firms’ profitability, meaning that, as anticipated, the development of COVID-19 products resulted in a profitability improvement. This dissertation meets the call for further research and provides new conclusions on the determinant factors of the profitability of this sector. |
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