The Analysis On The Assets Reorganization Of Pharmaceutical Listed Company In China

To be a way to reconstruct enterprises’ structure and manage resources,reorganization is being favored by more and more enterprises.As one of the important industries related to the national economy and the people’s livelihood,Pharmaceutical industry is always attached great importance to by the government.Pharmaceutical enterprises in our country have some characteristics like small scale,low affinity.Without scale advantage,cost reduction is hard to conducting and the capital size and research investment is limited.During these years,to enhance the overall strength,the government published many acts and policies that encouraged merger-and-acquisition and reorganization between Pharmaceutical enterprises from different areas and that have different ownership.It points out the developing way of the pharmaceutical enterprises and brought a huge reorganizing-wave.Now our pharmaceutical industry is stroked by foreign capital,it is more important for the pharmaceutical enterprises to fight against the foreign capital with larger dimensions and greater competitiveness by merger-and-acquisition and reorganization.This paper looked back the main reorganization theories,evaluates the reorganization’s drivers and disadvantages,and then worked out the conclusion after case-research.It is of great value for the development of our pharmaceutical industry.There are six parts of this paper.The first part tells us the research background,then gives a brief of main point,research thread and method.The second part firstly looks back at the foreign articles on reorganization.Some of these articles are about reorganization drivers like Efficiency Theory,Principal agent Theory,Hubris Hypothesis,and Wealth Redistribution Theory.The others are about typical researches on performance.As to domestic researches,this paper also looks back at typical researches on reorganization drivers and performance by using Inductive Analysis Method and Case Analysis Method separately.makes an analysis and conclusion of these theories.And it also lays the theoretical foundation of the whole article.The third part introduces the reorganization development domestic and overseas,identification,classification and features.The forth part analyses the reasons and disadvantages of the pharmaceutical industry reorganizations after introducing the pharmaceutical industry development status.It concludes reorganization drivers which include attracting laymen by high profit margin,propelling of the state-owned enterprises reform,scale up phasing under the pressure coming from home and broad and supporting and encouraging of national policy.It also concludes the shortage of reorganization which includes lack of target,over-intervening by government,imperfection of legal system and capital market,no variety of reorganization patterns and lack of persistence of fusion at the later period of reorganization.The fifth part introduces the case that BEIJING TIANTAN merged CHENGDU RONGSHENG,and analyses the drivers,organization content and steps in detail.Then evaluate this reorganization by comparing the financial index before and after reorganization to analyze its profitability,operation,solvency and development capability.The author finally assess that it reached the goal that expand scale,enhance anti-risk capability and core competitiveness,and reduce horizontal competition or related party transaction by comparing the performance before and after reorganization.The last part firstly makes a comprehensive conclusion of the whole paper.First,our country has a excellent situation for pharmaceutical companies to reform and they should take this chance because many policies are encouraging pharmaceutical companies reorganizing to enhance competitiveness.Second,many reorganizations have some shortage which have mentioned above,pharmaceutical companies should learn the lessons and put them right in time.Third,in the reorganization case of TIANTAN,the effect of reorganization is releasing year after year,the goal of reorganization is gradually achieved.Then this paper gives some suggestions on legal system and social security system for our pharmaceutical companies.Firstly,our country should keep on consummating legal systrem and social security system to provide guarantee for reorganization.Then we should build a more developed capital market to guide reorganization by using wholesome financial policy.And Companies should choose suitable object to merge by considering whether reorganization would in favor of enlarging scale,whether the object to merge have a good development potential,whether the two company would fusion well.Eventually,large-scale pharmaceutical companies in our countries can learn something from this paper and integrating their group and develop integrally.The main contributions in this article are listed below.First,it worked out valuable research method and model for domestic enterprises by researching articles and comparing research extent at home and aboard.Second,this paper worked out the general conclusion about the reorganization drivers and method for pharmaceutical listed company.It has reference value for the companies that want to reorganize.There are also two disadvantages in this article.First,for lack of materials collected,this paper just analyses only four years’ financial data before and after reorganization in case-research.But the performance of reorganization may show up in longer time.Second,for author’s limited time,energy and academic culture,this paper is a little simply in organization theory introduction and case-research.It needs to be strengthened for author.