Analysis On The Effect Of Cross-border M&A Of Luye Pharma Group From The Perspective Of Global Value Chain

The pharmaceutical industry is regarded as an "ever-rising industry".The development of Chinese pharmaceutical enterprises is directly related to people's health.Based on the beautiful vision of building a healthy China,the country will spare no effort to support its development.In recent years,the external market environment is good.At the same time,under the promotion of various welfare policies of the government,Chinese pharmaceutical enterprises have made significant progress in r&d,innovation,internationalization and other aspects.Nevertheless,there are still many practical problems to be solved.For example,China has problems such as unreasonable pharmaceutical industry structure,large but weak generic drugs,lack of core research and development technology,and single international export.Therefore,how to solve these problems should become the focus of scholars.However,due to the large technological gap between pharmaceutical research and development and western developed countries,it seems to have the intention to improve the international competitiveness through its own efforts,so m&a has become an important means for enterprises to become bigger and stronger.Mergers and acquisitions in China's pharmaceutical industry are surging.The development trajectory of large pharmaceutical enterprises and mergers and acquisitions are inseparable.As a new phenomenon,scholars seldom pay attention to the topics based on global value chain and the promotion of value chain as the motivation of m&a.The existing studies also focus on a few industries,such as textile industry and manufacturing industry.However,global value chain is not universal and has different effects in different industries and enterprises.Therefore,in view of the pharmaceutical industry,this paper selected luye pharma as the case study object to deeply analyze the effect of luye pharma in enhancing the value added of the value chain through cross-border mergers and acquisitions from the perspective of global value chain,so as to provide Suggestions for the development of domestic pharmaceutical enterprises of the same type.In this paper,PEST model is firstly used to sort out the development status of China's pharmaceutical industry,to interpret the position of China's pharmaceutical industry on the value chain,and to reveal the current problems that restrict the upgrading of China's pharmaceutical industry's value chain.Then,taking luye pharma group as a case,the motivation of cross-border m&a was analyzed from the perspective of global value chain.Finally,the effect of cross-border m&a was comprehensively analyzed through the improvement of value chain added value,post-merger financial situation and market situation.In this paper,annual reports of luye pharma group from 2013 to 2018 were used as data sources to analyze the value chain improvement effect of technical links based on the production rate of new products.The total factor productivity growth rate and labor productivity growth rate are selected to analyze the value chain promotion effect of production links.Select new product yield index to analyze the value chain promotion effect of marketing link.The results showed that luye pharma realized the synchronous climb of three aspects of the value chain through the acquisition of overseas companies Acino and astrazeneca.Finally,through the analysis of several financial indicators,it is found that the profitability of luye pharma,especially its overseas profitability,has been rapidly improved after the cross-border merger and acquisition,and its operating capacity has also been enhanced.Through the event study method,it is found that m&a has achieved a good short-term performance.However,due to the relatively slow time of putting pharmaceutical products into the market,it cannot quickly obtain a large profit,and the investment of investors still presents a conservative trend.Based on all the indicators,luye pharma group's cross-border m&a from the perspective of value chain has a positive effect.Finally,this paper puts forward some Suggestions for other enterprises in the pharmaceutical industry who want to use this strategy for reference.However,the "global value chain" model is not universal and cannot be directly copied and applied.It needs to carefully layout the advantages and disadvantages in the value chain according to the development status of enterprises.Finally,enterprises also need to pay attention to risk prevention and control and follow-up integration.