Merger Plan Research Of Gansu Longshenrongfa Pharmaceutical Industry Co.,LTD

China's pharmaceutical industry output value increased from 12350 yuan in 2010 to $25798 in 2014,the annual compound growth rate of up to 15.87%.In 2009,the State Council put forward that the traditional Chinese medicine and Western medicine should be placed in the same important position.Gansu Gansu sheenrun pharmaceutical Limited by Share Ltd combined with the actual situation,starting from the merger theory research,combined with the enterprise's mergers and acquisitions,mergers and acquisitions program development system,to understand the background and characteristics of China mergers and acquisitions mergers and acquisitions in the pharmaceutical industry,to provide theoretical reference China pharmaceutical industry mergers and acquisitions direction and development strategy.This paper uses literature research methods,merger & acquisition of pharmaceutical market and Gansu Gansu sheenrun pharmaceutical Limited by Share Ltd(hereinafter referred to as "Gansu sheenrun" or the "company")for research and development status quo,and formulate the system of merger and acquisition scheme.As for the pharmaceutical enterprises,mergers and acquisitions as the driving force of enterprise development,should be used as the preferred strategy.Through mergers and acquisitions,pharmaceutical companies,such as in the short term can enrich the product line,enhance R & D capabilities or expand the marketing network.But at the same time,the risks of mergers and acquisitions is very complex and diverse,there is no perfect risk measures it is likely to fall into the trap of mergers and acquisitions,so long sheenrun hair in the process of mergers and acquisitions need to be wary of the underlying assets of substandard performance risk,goodwill impairment risk and integration risk.Combined with their own situation,long God Rong Rong West Pharmaceutical Industry as the final selection of the object,and the use of the issue of shares of the 100% implementation of the West Pharmaceutical industry,the transaction price of $680 million.After the merger,the West Pharmaceutical will be incorporated into the listed company's business system,but as a wholly owned subsidiary of long Rong Rong,assets,operations and personnel to maintain stability and independent operation.