Strategic Analysis Of International Merger And Acquisition Of FOSUNPHARMA

In recent years, the number of merger and acquisition cases in domestic pharmaceuticals industry has proliferated. According to incomplete statistics, in 2012, merger and acquisition between domestic drug firms reached 230 with transaction amount of 28.374 billion yuan. In 2013, although only 150, but the trading amount exceed 35 billion yuan. According to the statistics of wind data, until 30 th Oct. 2014, the amount has reached 121.With the rapid development of national economy, the international status of China pharmaceutical market is increasingly highlighted. The total amount of drug sales of China ranked the third in the world behind America and Japan. And it is expected to surpass Japan in 2020, as the world’s second. The huge market potential stimulates the development of national pharmaceutical industry. Domestic pharmaceutical companies began to do merger and acquisition and strive to integrate resources, grow rapidly in order to occupy the huge domestic market.However, compared with large multinational companies, the domestic pharmaceutical enterprises mostly with a character of more quantities but smaller size, face the biggest challenge is strength disparity. In China, there are only two companies whose market values are both more than 50 billion. The biggest one is Yunnan Baiyao, with 53.945 billion of market value. But, its market value is only one over ten of the tenth global pharmaceutical company. Therefore, for the vast majority of domestic pharmaceutical companies, it is almost impossible to grow through the way of merge industry giants.FOSUN PHARMA walk in the forefront of the industry in terms of acquisition of pharmaceutical enterprises, is the domestic pharmaceutical enterprise learning model of mergers and acquisitions. Now, FOSUN PHARMA is a comprehensive pharmaceutical company whose investment involves different field of medicine. In recent two years, FOSUN PHARMA finished two important international merger and acquisition activities. One is purchasing Chindex International, Inc. and 30% stock right of Chindex Medical Limited(CML), the other is purchase more than 95.6% stock right of Alma Lasers Ltd. It brings us a fresh perspective: Beyond the regional restrictions, preempted domestic medical market by means of cross-border merger and acquisition. Besides, this paper will use related research theory to analyze these two cases such as the type of target enterprise merger and acquisition, motivation analysis, strategic analysis, the right of control and performance evaluation.There are 6 chapters in this paper. The first chapter is an introduction which clarifies research background, research problem, content, significance and research approaches of merger and acquisition. It also introduces some key concepts. The second chapter is a theory and literature review which integrates theory of international merger and acquisition and researches from domestic and abroad scholars. The third chapter is to introduce development history of international merger and acquisition in China and situation of national pharmaceutical industry. The forth chapter do some investigation on basic situation of Shanghai FOSUNPHARMA(Group) Co., Ltd. The fifth chapter focuses on FOSUN twice cross-border merger and acquisition cases study analysis. Last chapter is a conclusion..