Study On The Motivation And Effect Of Continuous Merger And Acquisition In Dongcheng Pharmaceutical Industry

In recent years,with the acceleration of the aging process of the population and the steady im plementation of the new medical reform policy,The pharmaceutical industry has become one of the important economic pillars of our country.However,there have always been some problems in China's pharmaceutical industry,such as unreasonable industrial structure,weak ability of independent innovation in drug research and development,generic drugs occupying the mainstream position,homogeneity and severity of pharmaceutical products.This series of problems have always restricted the overall development of China's pharmaceutical industry.Since the 12 th five-year Plan,the Government has invested a large amount of funds in promoting the implementation of health care reform measures.Moreover,a number of encouraging policies have been issued to promote merger and integration of enterprises,and the 13 th five-year Plan was issued in 2016.Under the strategic background that the state actively encourages pharmaceutical enterprises to take "going out",Dongcheng Pharmaceutical Industry has carried out capital expansion with the help of M & A platform,and completed four successive mergers and acquisitions in just three years,not only continuously but also continuously.The purchase and acquisition of high-quality target enterprises is aimed at the opportunity to step into the nuclear medicine segment,so that its development has achieved a better expected effect.In view of this,this paper takes the continuous merger and acquisition of Dongcheng pharmaceutical industry as a case study in the current hot industry,and makes a deep analysis of the motivation and performance of the continuous merger and acquisition in the past three years,in order to deepen their cognition of the continuous merger and acquisition.It provides some reference for other enterprises that want to develop through continuous and acquisitions.On the basis of reviewing the relevant literature at home and abroad combining with the case study method,this paper analyzes the continuous merger and acquisition of Dongcheng Pharmaceutical Industry.Firstly,it describes the main body process of the continuous merger and acquisition,and then,Through in-depth analysis of the causes of continuous M & A of Dongcheng Pharmaceutical Industry,the cumulative excess return rate before and after the continuous merger and acquisition of Dongcheng Pharmaceutical Industry is analyzed by means of event study method.The data are based on the annual reports and announcements of companies before and after the continuous merger and acquisition of DongchengPharmaceutical Industry.The financial index evaluation method and comparative analysis method are used to analyze the continuous and non-financial performance.Finally,the full is summarized,and the conclusion and enlightenment are drawn.By analyzing the case of continuous merger and acquisition of Dongcheng pharmaceutical industry,this paper draws the following conclusions: the motivation of continuous merger and acquisition is multi-faceted,including the promotion of favorable policies in the industry,the realization of strategic transformation of enterprises,and the improvement of nuclear medicine layout.To eliminate the company's existing risks and so on,after the merger and acquisition event,the short-term shareholders' wealth rose,the market performance showed a good trend of development,and in the aspect of financial performance,the enterprise's profitability and growth ability were improved.Increased capital efficiency and slightly improved the level of asset management.In non-financial performance analysis,successive mergers and acquisitions expanded market share,optimized the business sector,enriched the product line,and enhanced the performance of non-financial performance analysis.Research and development ability and make the talent structure more reasonable.Through the analysis of successful cases of continuous merger and acquisition of Dongcheng pharmaceutical industry,this paper obtains relevant enlightenment.Enterprises should draw lessons from the successful experience of continuous merger and acquisition of Dongcheng pharmaceutical industry,combine with their own strategy to carry out mergers and acquisitions,and choose clear and reasonable M & A objectives.In order to reduce the pressure and improve the efficiency of M & A,we should pay more attention to the integration after M & A.