A Research On The Performance Of Continuous M&A Of J Pharmaceutical Enterprises

In recent years,the acceleration of population aging and the implementation of new medical reform policies have greatly stimulated residents’ demand for drugs,leading to the continuous expansion of the pharmaceutical consumption market.Moreover,in order to promote the development of China’s pharmaceutical industry,the government has not only invested a large amount of funds to promote the implementation of medical reform measures,but also issued multiple policies to promote the merger and integration of pharmaceutical enterprises.Based on the current industry situation and policy hotspots mentioned above,mergers and acquisitions have gradually become an important way for Chinese pharmaceutical enterprises to achieve their strategic development.Against this backdrop,J Pharmaceutical Company leveraged the capital market and completed three mergers and acquisitions within six years.Although it consolidated its traditional business through continuous mergers and acquisitions,targeting the opportunity to enter the field of terminal pharmaceutical products,its financial situation did not significantly improve.Therefore,this article selects J Pharmaceutical Company as a case enterprise,and explores whether continuous mergers and acquisitions can have a positive impact on the development of the enterprise by studying its industry situation,merger motivations,and merger performance.Through in-depth research on the case of continuous mergers and acquisitions of J Pharmaceutical Company,this article finds that the motives for its continuous mergers and acquisitions are multifaceted,including the driving effects of favorable industry policies and market environment,as well as the reasons for improving the company’s operating conditions,achieving industrial layout,extending market space,and obtaining advantageous resources.In terms of market response,not every merger and acquisition event enhances the shareholder wealth effect.In terms of financial effects,the performance of business synergy,management synergy,and financial synergy in continuous mergers and acquisitions is average.In terms of non-financial effects,continuous mergers and acquisitions have further expanded the company’s market share,adjusted and optimized its business sectors,and improved talent cultivation.However,the company’s R&D capabilities have not developed sufficiently,and the growth in R&D investment and the number of R&D personnel has decreased.Finally,through a case study of J Pharmaceutical Company’s continuous mergers and acquisitions,corresponding improvement suggestions were proposed for the internal environment of the company,as well as some suggestions for the external environment.