Value Creation Of WuXi AppTec’s Consecutive Mergers And Acquisitions Under The Whole Industry Chain Strategy

Today,Today,most of the items in China are still very dependent on imports,especially in high precision fields,such as engine parts,chips,precision instruments and consumables,pharmaceuticals,etc.Among these items,pharmaceuticals,as essential items,are safe for the lives and health of the people and assume the support of the entire medical system.History has shown that in the event of war or export embargo,the absence of key drugs will cause serious damage to social stability.Therefore,innovative drug development technology must be firmly in our own hands.Based on this,this paper attempts to explore the process and mode of value creation by Wu Xi App Tec using consecutive M&As from2000 to 2019 through the lens of resource action and by combing and studying the events of consecutive M&As from 2000 to 2019.In order to accelerate the speed and efficiency of innovative drug research and development and break through the technical problems of foreign "neck" and "brain",Chinese companies have made successive mergers and acquisitions of foreign companies to "overtake" them."Based on resource action theory,synergy theory and market power theory,this paper summarizes the literature related to resource action,sequential M&A and value creation,and reviews the existing studies.Using theories and literature as support,this paper selects the classic case of Wu Xi App Tec’s successive multinational mergers and acquisitions of foreign companies to create value by building a whole industry chain strategy for pharmaceutical outsourcing services(hereafter referred to as CXO)to illustrate the successive mergers and acquisitions implemented by Wu Xi App Tec and analyze them,so as to illustrate Wu Xi App Tec’s overall thinking on value creation through successive mergers and acquisitions under the CXO whole industry chain strategy.The analysis concludes that under the whole industry chain strategy,Wu Xi App Tec has continuously extended its chain length and integrated its human resources,technology,business and ecosystem.According to different corporate and policy environments,it timely adjusts its strategic positioning orientation and adopts suitable resource action strategies to break through multiple resource constraints that limit corporate growth and ultimately create value.This paper expects to provide a theoretical supplement to the successive mergers and acquisitions of foreign firms by Chinese firms and to provide practical implications for Chinese firms going abroad.