Pharmaceutical Mergers And Acquisitions Strategy

This paper analyzes and introduces that merger has become a major strategic to achieve the main form of capital expansion in the business development of a company. It's certain that this method will bring high profits. However, at the same time, high risk will also be constituted. With the rapid developing of China's pharmaceutical industry recently, especially after being a member of WTO, the wave of mergers and acquisitions has been raised quietly. Due to the special nature of the pharmaceutical industry, mergers and acquisitions for pharmaceutical companies have different requirements. Generally speaking, the development of pharmaceutical enterprises requires large amount of investment and always has long term of return, thus pharmaceutical business development model has its corresponding features. In our country, the development of pharmaceutical enterprise doesn't have a long history. It's no surprising to find that the development of this industry is so slow. Therefore, research about the development of pharmaceutical enterprises and trying to find out the good or bad impact the merger will bring on pharmaceutical enterprises has a great guiding significance.This paper also briefly introduces M & A strategy, then based on the analysis of the characteristics of pharmaceutical mergers and acquisitions, after analyzing corporation S's actual condition, it gives decision analysis about merger strategies for pharmaceutical enterprises. The analysis includes the research about the company and the need for mergers and acquisitions, as well as the elemental and financial analysis of this company. According to this case, we find out the necessity of merger for some pharmaceutical companies in detail and tell how to implement this strategy and avoid the risk as well.