Research On The M&A Performance Of My Country's Pharmaceutical Industry

The growth and development of enterprises generally rely on two ways: endogenous growth and exogenous growth.Endogenous growth is that enterprises rely on their own accumulation,research and development products,and open up marketing channels to make enterprises develop.Exogenous growth is often called mergers and acquisitions,that is,by absorbing other independent companies to achieve rapid development of enterprises.Compared with slow endogenous growth,M&A can take the lead in rapid capital expansion and disperse risks.For the society,mergers and acquisitions transfer capital rapidly,accelerate capital flow,and promote the effective allocation of social resources and industrial restructuring.With the acceleration of the process of global integration,competition in all walks of life is also intensifying.In order to improve the competitiveness of enterprises,mergers and acquisitions between enterprises occur frequently.Pharmaceutical industry is a sunrise industry.With the continuous improvement of medical conditions and the aging of the population,people pay more and more attention to the development of the pharmaceutical industry.China's pharmaceutical industry is still in the initial stage of development,showing problems such as small-scale enterprises,poor R&D efforts and serious homogeneity of products.In order to solve these problems,China has issued a new health care reform policy to promote mergers and acquisitions in the pharmaceutical industry.The mergers and acquisitions in the pharmaceutical industry are in full swing,and Connbe series mergers and acquisitions are the representatives.This paper takes Connbe's merger and acquisition of three pharmaceutical companies as an example,uses event study method,DuPont analysis method and economic value added method to study the short-term and long-term performance of the event.Through the analysis of the results,it judges the success of Connbe's merger and acquisition,and puts forward suggestions,hoping to bring inspiration to other pharmaceutical companies' merger and acquisition.Firstly,this paper analyses the environment of M&A in pharmaceutical industry,and puts forward the characteristics of M&A in pharmaceutical industry.This paper introduces the merger and acquisition situation of Connbe,and analyses its motive of merger and acquisition.The short-term market effect of M&A is analyzed by event study method.Firstly,the announcement day of M&A is taken as the event day,and the ten days before and after the announcement day are chosen as the event window.Using market adjustment method,the Shanghai Stock Exchange Index is taken as the normal rate of return,and the excess rate of return during the period is calculated.Then the accumulated excess rate of return is obtained.If the accumulated excess rate of return is negative,M&A does not bring short-term.Performance,if the cumulative excess rate of return is the rule to bring short-term performance.On the other hand,starting from the financial statements of listed companies,this paper uses financial analysis method to analyze the profitability,solvency,operation ability and development ability of enterprises,and supplements it with EVA analysis to summarize the effect of mergers and acquisitions.The conclusion shows that short-term Connbe merger and acquisition of JiaHe Pharmaceutical has obvious positive effect;merger and acquisition of wufushengmeifu Pharmaceutical has positive effect;merger and acquisition of Zhenming has weak positive effect.In the long run,the economic value added has always been positive during the Connberg M&A series,and this successive M&A conforms to the company's strategic development.Finally,combined with the case of this article,the paper puts forward the problems existing in the merger and acquisition of Conmbe,and puts forward some suggestions: reduce excessive debt financing and parallel multiple payment methods;To improve the efficiency of management decision-making,to further explore the resource advantages of mergers and acquisitions,and to better play the integration effect of internal and external resources;Reasonable and prudent risk assessment.