Research On The Performance Of Series M&a Of Pharmaceutical Enterprises Based On Long-term Development Strategy

The M&A market in my country’s pharmaceutical industry is relatively active.With the deepening of medical reform measures,policies such as consistency evaluation,centralized procurement,and two-vote system have greatly reduced the profits of pharmaceutical companies.At the same time,many pharmaceutical companies have needs for drug development,sales,and branding.Therefore,the upsurge of pharmaceutical mergers and acquisitions will continue,and it is of great significance to evaluate the performance of mergers and acquisitions.Fosun Pharma is a typical pharmaceutical company that has achieved rapid expansion through continuous mergers and acquisitions.Has continuous mergers and acquisitions based on the entire industry chain layout strategy since 2003 achieved results and improved corporate value? By solving the following questions,Fosun Pharma comprehensively and deeply evaluates and analyzes the performance of continuous mergers and acquisitions based on the long-term development strategy: 1.What is the long-term development strategy of Fosun Pharma? 2.What are the motivations for mergers and acquisitions based on long-term development strategies? 3.How to conduct a comprehensive and accurate performance evaluation of Fosun Pharma’s continuous mergers and acquisitions? 4.To what extent are the various M&A drivers of Fosun Pharma realized?This article takes the overall performance of Fosun Pharma’s continuous merger and acquisition process as an evaluation perspective.First,through combing the relevant literature and theories,it is clear that the rationality of evaluating M&A performance from the perspective of M&A motivation based on long-term development strategy.Secondly,sort out industry policies,developments and business operations,analyze the strategic stages of each business sector and the specific goals to be achieved under the entire industry chain layout,match with the M&A process,and conclude that all M&A activities carried out from 2003 to 2018 It is based on the long-term development strategy of the whole industry layout.According to the specific objectives of the long-term development strategy and the theoretical analysis of M&A drivers,four path drivers and one ultimate driver of continuous M&A are obtained.Through the combination of quantitative and qualitative analysis methods to evaluate the degree of realization of the two types of M&A drivers,so as to comprehensively evaluate the performance of M&A.Through the above evaluation,it can be concluded that the four paths of Fosun Pharma’s continuous mergers and acquisitions have achieved a good overall degree,mainly reflected in: 1.Expanded product scale and reduced production costs;2.Guaranteed stable operation through horizontal and vertical diversified operations,So that the operating income can grow steadily;3.access to the technology,brand,marketing network and other resources of the target company has improved the core competitiveness of the company;4.Although the current vertical mergers and acquisitions have not reduced the sales expense ratio,but have integrated the procurement and sales channels,In the future,it will also reduce procurement costs and promote product sales.After a better realization of the path motivation,the ultimate motivation was ideally realized,that is,to improve Fosun Pharma’s competitiveness and market position,which are specifically reflected in: 1.Increased profitability,growth ability and solvency;2.Increased The industry has the right to speak,so the turnover rate of accounts receivable is higher;3.The market recognition has also been improved,and the financing ability has been improved;4.The status of the industry has improved and it has become the top ten in the industry.This paper provides the logic of M&A performance evaluation system of "enterprise development strategy-M&A motivation-M&A performance evaluation" for other pharmaceutical companies that carry out M&A activities based on enterprise development strategy,making the results of M&A performance evaluation more relevant and comprehensive.Second,a comprehensive and in-depth performance evaluation of the specific situation of Fosun Pharma can more accurately evaluate whether Fosun Pharma’s continuous mergers and acquisitions have succeeded and whether the company’s development strategy has been implemented to provide direction and reference for merger and acquisition integration and subsequent merger and acquisition activities.It can also help investors to correctly understand the value of Fosun Pharma after mergers and acquisitions and make rational investment behaviors.