Research About The Mode Of Merger And Acquisition Based On Pharmaceutical Whole Industry Chain

The mode of merger and acquisition(hereafter as MA)based on pharmaceutical whole industry chain is related to the destiny of all pharmaceutical companies laying in a globalized world,and to their core competence in industry,domestic and international.The global integration of industry chain provides foreshadowing for company strategy by MA method,which reduces the risk of "Fight Alone" caused by its single domain or product line to a certain extent,which helps the implementation of scale effect to stay in pharmaceutical market.However,how to choose the right way to MA mode of whole industry chain becomes the critical issue to drug company,even to companies in other fields.From the view of corporate strategy,the text is used two researching ways(theory and practical case).The theory direct,it firstly achieves a basic M&A mode structure which is Five(5)roads with Sixteen(16)M&A mode and Nine(9)sub-M&A mode,as well as secondly analysis pharmaceutical features through Harvard School SCP theories and data from government website,and study the practical cases by SWOT theory.the practical direct,it starts from a development history of a drug listed company to prove the theoretical structure.and final conclusion is to summary of above two parts,helping enterprises make effect decision on M&A road to desire its strategic target.Hence,some conclusions has drawn pertain to M&A whole industry chain:(1)Barrier factor of pharma industry size d=0.0135%(far lower than 5%),which means low entering in and high dispersibility,so with the help of the whole chain M&A method to improve the concentration of industry and enhance competition of company;(2)Information technology can drive the process of M&A in whole chain,for example "Internet +" can advertise relevant information of high quality drugs to achieve global industry chain for company;while Laboratory Information Management System(LIMS),Enterprise Resource Planning(ERP)which are promoting their own functions can raise company's efficiency,so help the company to extend advantage to other fields;(3)The blossom of capital market also push the whole chains strategy.Therefore,on the basis of above research clues,the context reflects the MA mode of whole industry chain in diversity,it can be designed by company's own request.In addition,over the conclusions,we know that pharma industry has several characters,such as low barrier of entering in,over-competition and regulations from both nation and industry,so company should walk in M&A road of whole chains.in order to push M&A process by their own operation capacity,corporations should take the use of science and information technology in high levels which as critical part of whole chains M&A road.Meanwhile,capital market in rational operating can propel the process of M&A.In finally,the conclusions also provide theory basis to choose mode for the companies who stand in other fields in the whole chain M&A road.