M&A Performance Research On HR Pharmaceutical Commercial Group

With the new medical reform program announced in 2009, the government hopes to accelerate the enhancement of industrial concentration and management upgrading in pharmaceutical industry. In this background, the domestic pharmaceutical companies set off a wave of mergers and acquisitions (M&A). Therefore, a comprehensive study and scientific analysis of the M&A performance of pharmaceutical companies have become a key factor to measure the success of pharmaceutical M&A, which is directly related to the companies’understanding on how to improve the performance of M&A. Only really improve the performance of mergers and acquisitions can they enhance their competitiveness, thereby creating value. The paper has certain theoretical and practical significance.The whole article is divided into six units. Firstly, the paper introduces the background and significance of topics, content and methods. Secondly, the concept of M&A, the theory foundation and the current research situation both at home and abroad on M&A performance. Thirdly, the analysis of Chinese pharmaceutical industry M&A situation, including the institutional background of mergers and acquisitions, situation analysis and existing problems. The forth, put forward a series of comprehensive evaluation indexes on the basis of summarizing the characteristics of pharmaceutical enterprises, so as to build the M&A performance evaluation indexes system of the pharmaceutical enterprises. The fifth, analysis was carried out using case study method on the M&A performance of HR pharmaceutical commercial group. Based on factor analysis to analyze and evaluate each indicator extracted three common actors, and get the comprehensive performance score function. Compare the performance before and after the M&A, then draws the relevant conclusions. The evaluation results show that the performance of M&A about HR pharmaceutical commercial group rapid decline in the first year after M&A, after that showing an increasing trend year by year. It also proved that the comprehensive advantages of multi-dimension evaluation indexes and using the factor analysis method to evaluate the performance of M&A is more objective and reasonable. Finally, put forward some related strategies and suggestions on Chinese pharmaceutical companies’M&A, and explain the limitations of this study.The study found that M&A performance of HR pharmaceutical commercial group appears slowly, performance rapid decline in the year of M & A, but overall is still rising.