Evaluation of Risks in Medicine Companies in TSE

In this research, for evaluation of risks in Medicine Companies in TSE. By using Modern Portfolio Theory and "Robert Haugen" technique, We evaluate Systematic & Unsystematic risks in Medicine Companies Portfolio and also use Post-modern Portfolio Theory for comparing downside risk between Medicine Companies Portfolio and Tehran Stock Exchange. So, first we made the quantitative evaluation of Medicine companies’ risks with the financial approach and then we concluded in the research time territory, the downside risk of the medicine companies portfolio in every year, has been more than the negative risk of the TSE and also recognized that unsystematic risk of the medicine companies is more than their systematic risk. So, the risk that most affects the returns of medicine companies is the rise of internal factors, such as: the company management or medicine industry and the external factors, such as: market factor that has had a lower affect on the risk of the medicine companies portfolio returns and the reason is that all governments have accepted the supply of medicine in every conditions so, the medicine industry is not effected by environmental changes. As the second step, the qualitative evaluation (identifying & rating) of medicine risks with the marketing approach is studied. For identifying and rating the existing risks in the medicine industry through the questionair and opinion assessment replies were analyzed and the following results were obtained. The shortage of the raw materials, import of the medicine, production without considering the market needs, lower sale price, control of government on prices, lack of experts, lack of liquidity, lack of creativity and innovation and etc are the most serious factors on increasing the risk in medicine corporations. Also, privatizing and private management, foreign investment, private management with government supervision and export are the most serious factors in decreasing the risk in medicine corporations.