A Case Study On The Financial Effect Of The Hisoar Pharmaceutial Company After Merging Taizhou Advancing Company

With the development of society and the progress of science and technology,people's living standards have been improving constantly.Many people began to pay more attention to physical and mental health,while investment in medicine has gradually increased.Nowadays,the State Council issued the “13th Five-Year planning for deepening the reform of medical care system",which made the pharmaceutical industry once again become the focus of the whole society.At present,several large pharmaceutical companies in the world have become the global pharmaceutical industry giants through mergers and acquisitions,which have turned to be the only way for listed companies in pharmaceutical industry to optimize the allocation of resources,achieve sustainable development,and grow bigger and stronger.Mergers and acquisitions events occur frequently in pharmaceutical manufacturing enterprises in China,and whether they succeed are determined by the possibility of successfully achieving the target after mergers and acquisitions and making the operation of companies improved.Hisoar pharmaceutical Co.,Ltd.,a characteristic raw materials manufacturer,has faced the increasingly fierce competition and low income and high cost caused by huge loss.It has proposed a merger and acquisition with Taizhou Advancing Company for the strong profitability of the dye plate beyond the pharmaceutical industry and hoped to turn deficit to profit.This paper begins with the descriptions of related theories including introduction of the relevant theories of mergers and acquisitions,literature review of the merger effect to the business performance and introduction and comparison of common evaluation methods.This paper then mainly focuses on the case study of Hisoar pharmaceutical Co.,Ltd.after merging Taizhou Advancing Company.Firstly,introducing the main body of the merger and process.Secondly,using the event study method,financial index analysis method and EVAanalysis method to analyze the performance changes before and after Hisoar pharmaceutical mergers and acquisitions.Finally,drawn from the case analysis,Hisoar pharmaceutical merger of Taizhou has reached Hisoar pharmaceutical targets.Company strategies have changed from the production of characteristic raw materials into pharmaceuticals and dyes,which has turned deficit to profit.Positive conclusions can be drawn from the Hisoar pharmaceutical mergers and acquisitions.