A Case Study Of Menovo Merger And Acquisition Liaoyuan Pharmaceutical

The pharmaceutical manufacturing industry is an important industry related to national economy and people's livelihood.China has listed it as a strategic emerging industry in the "Twelfth Five-Year Plan".China Manufacturing 2025 has also listed it as a key development area.But at present,the development status of Chinese pharmaceutical manufacturing industry is not satisfactory,especially for some API manufacturers with poor R & D capabilities,low gross profit margin,high product homogeneity,and fierce industry competition.With the implementation of the new version of GMP in 2011 and the consistency evaluation policy for the quality and efficacy of generic drugs that began in 2016,it has accelerated the development of mergers and acquisitions in the pharmaceutical manufacturing industry.However,considering the high value and large volume of listed main board companies,it is more difficult to initiate mergers and acquisitions with each other.Therefore,some listed main board companies have set their sights on the NEEQ to increase industry concentration and enhance corporate strength through cross-market mergers and acquisitions.The thesis adopts the research method of case analysis.The theoretical part expounds the concept,type,effect evaluation method of merger and acquisition and related theory of merger and acquisition.The thesis selects and analyzes the case of Menovo merger and acquisition of Liaoyuan Pharmaceutical in NEEQ.It first introduces the basic situation of Menovo and Liaoyuan Pharmaceutical,sorts out the merger and acquisition process and explains the merger and acquisition plan,and concludes that this is a merger and acquisition of a listed company on the NEEQ by a listed company on the main board for the purpose of holding shares.Secondly,the merger and acquisition transaction was analyzed from multiple angles,mainly analyzing the motivation,market effect,financial effect,synergy effect and potential risk response of the merger and acquisition.Through analysis,it was found that the main motivation for Menovo to carry out this merger and acquisition is to expand new products to expand market share,absorb high-quality assets and enhance sustainable profitability.At the same time,policies and industry characteristics have promoted the realization of this transaction;through the calculation of AR and CAR,it is found that the stock market is optimistic about mergers and acquisitions behavior;after the merger and acquisition,althoughthe profitability of Menovo has improved,the changes in other financial indicators have not shown a good trend;the enterprise's operating synergy and financial synergy can be realized,horizontal mergers and acquisitions can achieve scale effect,the market scope can be expanded,and the tax-saving effect obviously plays a role,but management synergy still needs to be improved.Finally,based on case studies,we can draw lessons from the enlightenment.Main board listed companies can choose NEEQ listed companies to achieve their own expansion.However,when choosing mergers and acquisitions targets,they should be consistent with their own development strategies;and enrich the payment methods of NEEQ mergers and acquisitions transactions.The company that initiated the merger should do a good job in dealing with potential risks before implementing mergers and acquisitions.After the mergers and acquisitions,it should pay attention to strengthening asset cost management to enhance synergy.At the same time,it must complete the integration of mergers and acquisitions resources as soon as possible and properly.