Research On The Performance Of Huarun 39 Acquiring Zhongyi Pharmaceutical

Recently,the challenges of the new health care reform to the development of China’s pharmaceutical industry became more and more prominent.Under the policy of purchasing with quantity,the price of some kinds of medicines has fallen by as much as 95%.Merger and acquisition is one of the important means to face the cruel price war.Nowadays domestic pharmaceutical giants,such as Fuxing Pharmaceutical and Chinese Pharmaceutical Group,have actively participated in the upsurge of mergers and acquisitions.However,whether M&A can meet the needs of the development of the new pharmaceutical era,and whether it can match the strategic planning of enterprise development,and ultimately improve the financial performance of enterprises? At present,domestic and foreign research has not given a clear answer.In this paper,the merger and acquisition of Zhejiang Zhongyi Pharmaceutical.by Huarun 39 in 2015 is selected as an example.This paper explores the short-term,medium-term and long-term performance impact of merger and acquisition on Huarun 39.Then we will discuss the short-term,medium-term and long-term changes in financial performance of pharmaceutical enterprises after M&A.In the first part,this paper elaborates the background and significance of the research,reviews the motivation,risk and performance of overseas M&A at home and abroad;in the second part,it introduces the development process and operation status of Huarun 39 and Zhongyi Pharmaceuticals.The third part,the event analysis method evaluates the short-term performance impact;the financial performance index analysis constructs five categories including 14 main financial indicators,including profitability,solvency and so on.Thirty-five listed A-share companies with M&A events in 2015 are screened out,and empirical research is carried out by factor analysis method.Horizontal comparison of the performance changes after the merger and acquisition of Huarun 39,and in-depth analysis of the trend of performance changes after the merger and acquisition of pharmaceutical enterprises.Finally,this paper summarizes some conclusion of Huarun 39 M&A.Based on the case of Huarun 39 M&A,this paper summarizes several suggestions.