Performance Analysis Of Fosun Pharmaceutical Merger And Acquisition Of Gland Pharma

The aging population makes the importance of the development of the pharmaceutical industry increasingly prominent,but the development of the pharmaceutical industry in our country still has a long way to go.Some medical enterprises choose to expand their scale,enhance their pharmaceutical capabilities and gain access to the market through mergers and acquisitions.At present,there is no unified conclusion in the existing research to show that enterprises can certainly achieve their goals through mergers and acquisitions.This paper chooses Fosun Pharmaceutical to demonstrate the case study of acquisition of Gland Pharma,which is the largest acquisition in the pharmaceutical industry in 2017.Through this overseas merger and acquisition,Fosun Pharmaceutical hopes to acquire the core products of Gland Pharma,thereby expanding the global market,obtaining more professional researchers to study drugs,and improving its current shortage of talents.As a result,through performance analysis,this article will check whether Fosun Pharmaceutical has reached the original intention of merger and acquisition.On the basis of literature research on mergers and acquisitions at home and abroad,this paper analyzes the market performance through the method of event research,evaluates its financial performance through traditional financial indicators and EVA,and also analyzes non-financial indicators such as the R&D input and output of enterprises,the quality of R&D team personnel,and the market position of enterprises,so as to evaluate the merger and acquisition performance of Fosun Pharmaceutical.From the analysis of market performance,the effect of M&A was remarkable in the first few days after the completion of M&A,and then the income began to decline.From the perspective of financial analysis,traditional financial indicators show that Fosun Pharmaceutical's short-term benefits are not obvious enough and it has not significantly improved its own strength.From the perspective of EVA analysis,this paper calculates and compares the relative value of fosun pharmaceutical EVA/total assets before and after the merger,and finds that the increase rate of enterprise value has slowed down after the merger.However,from the analysis of non-financial indicators,the number of professional talents and the number of research patents in enterprises have increased.Therefore,in the long run,enterprises have great development potential.Through a series of analysis,this paper finds that Fosun Pharmaceutical has not been well integrated after the merger and acquisition,and has not fully integrated with Gland Pharma's advantages.Moreover,as the market competition continues to intensify,theenterprise has basically maintained its status quo and has not obtained the advantages from the merger and acquisition to reach the expected level.Through this case,the following enlightenment can be drawn from the merger and acquisition of enterprises: firstly,enterprises need to reasonably select the enterprises to be merged,choose the appropriate target enterprises according to their own development plans,and through overseas merger and acquisition of enterprises,they also need to consider various factors such as national level,politics and culture.Secondly,the enterprise should choose the appropriate payment method for the amount of merger and acquisition according to its own assets.If the amount of merger and acquisition is too large,only cash payment method will bring pressure to the operation of the enterprise.Finally,after the completion of the merger and acquisition,enterprises should pay attention to the full integration of the two enterprises,maximize the advantages of the two enterprises,find reasonable compromise solutions to solve the contradictions,and make the merged enterprises have stronger competitiveness.