Our Country Medicine Industry Merger And Acquisition Performance Empirical Analysis

The rapid growth of the pharmaceutical industry, which attracted the close attention of global investors. The pharmaceutical industry has a high input, high-risk, high-tech, long development time, the acquisition of R&D cost savings, reduce investment risk and shorten the investment cycle, and therefore, mergers and acquisitions to become the pharmaceutical giant is the main way of doing business. In recent years, the industry’s enterprises to invest in value be highlighted that the equity market continued to be active, mainly large pharmaceutical companies in the industry M&A activity also increased year by year. But the acquisition will bring to the enterprise itself many uncertainties can really bring performance to the acquiring company? M&A performance issues with this problem the pharmaceutical industry research and analysis. This article is divided into a total of five parts:the first general introduction articles, research background, research significance, the structure of the thesis, research and methods. The second part introduces the concept of mergers and acquisitions and mergers and acquisitions motivation. Then introduced the M&A performance evaluation method. Two methods frequently used by scholars of M&A performance: the event study methodology, the research results of the financial indicators of law simple comments.The third section describes China’s pharmaceutical industry mergers and acquisitions and the pharmaceutical industry itself, the particularity of its acquisition motivation is different from other industries. The fourth part of M&A performance made an empirical analysis. Describes the data sample and the selection process of the performance evaluation system. Analyzed using factor analysis of selected financial indicators, draw the M&A performance data for the2007-2010sample, the M&A performance by the data derived from the real situation. Part V for the study conclusions and recommendations. Mergers and acquisitions play a certain role in the performance of listed companies of the pharmaceutical industry to improve and to provide opportunities for development, compared with the pre-merger year, M&A performance was a significant increase on M&A performance data and the real situation, there are more than half of mergers and acquisitions the company made positive gains of mergers and acquisitions began to decline, but from the the acquisitions second M&A performance. The high rate apparently did not first year after the merger is so obvious. Although the2009and2010the overall industry profitability is slowing down, shrinking profit margins caused.2009, due to rising raw material prices, and prices rise in oil prices led to the foundation of chemical products; rising labor costs; rising environmental costs and other factors led to the rise of production costs. Government pricing of drugs continue to price decline, caused the narrowing of profit margins of the pharmaceutical industry. But the acquisition of practical effect and did not expect so good, the overall performance of the reorganization of assets is not significant. Made a brief analysis of the reasons for these problems, given some of the recommendations. Want to be able to provide some suggestions to the pharmaceutical industry in China M&A activity.