To support the emerging companies the government has been relaxing IPO criteria for technology-based enterprises for several years The new drug-developing biotech industry has had the most successful cases of IPO during the past ten years However these TWSE/TPEx listed companies generate limited profit to shareholders that is contrary to the governmental purpose of supporting industrial development Thus this study tries to evaluate the effectiveness of current system on the new drug-developing biotech Industry Based on the qualitative research single case studies and in-depth interviews are conducted to explore the motives of companies applying IPO through the current system and difficulties of TWSE/TPEx listed companies producing profits Companies decide to apply IPO as earlier as possible due to the capital requirement; however the intrinsic characteristics of new drug-developing biotech industry and a small operational scale result in continuous deficit in those companies even after IPO Thus setting new criteria as the operation scale above a certain level is necessary ensuring that companies have profitability when they are applying for IPO Also the government should assist TWSE/TPEx listed companies by establishing a tracking system for R&D progress and financial performance These guidelines could be helpful for the government to aid and supervise the research plan of the company promote the industrial development and protect the investors’ interest
A Review on the Policy of relaxing IPO criteria for Technology Based Enterprises in Taiwan - A Case Study of New Drug-developing Biotech Industry
昌頡, 林. (Author). 2020
Student thesis: Doctoral Thesis