MEASURING EFFICIENCY OF PHARMACEUTICAL COMPANIES OF THE REPUBLIC OF UZBEKISTAN

Abstract

This paper presents a Data Envelopment analysis (DEA) for measuring efficiency of pharmaceutical companies. Letting each of fifteen companies in each year be a separate decision-making unit, and utilizing three inputs and one output, we measure annual efficiency values, slacks and target units of Uzbek local pharmaceutical companies for decade 2010-2019 as defined by the period of variables. Measuring efficiencies for every year together with slack values and suggested target monetary values, we empirically show that on average 5 firms (Reka med, Dentafil, Torimed pharm, SEEM and Uzgermed) out of 15 were inefficient every year. However, inefficiency was not significant, varying around 0.80-0.99. Throughout the study decade, most frequent slacks were depicted in excess input utilization rather than output usage.