The objective of this study is to examine the effects of the establishment of the audit committee and its quality characteristics on corporate operating performance for Taiwanese pharmaceutical listed firms of the biomedical Industry covering the 2008-2017 period. This study employs the values of the technical efficiency that obtained from the Data Envelopment Analysis (hereafter DEA) to proxy for the operating performance of the firms and uses the Tobit regression to test the empirical research. The empirical results show that those firms that have setup an audit committee lead to better operating performance. In addition, firms with better audit committee quality characteristics demonstrate higher operating performance.