Study On The Influence Of Continuous Mergers And Acquisitions Of Pharmaceutical Enterprises

In recent years,with the intensification of market competition and the introduction of various pharmaceutical policies,the overall profits of the domestic pharmaceutical industry have been greatly compressed,bringing unprecedented pressure to pharmaceutical enterprises.In this context,major pharmaceutical enterprises have realized the effective combination of resources through mergers and acquisitions,and quickly improved the core competitiveness of enterprises to cope with the industry competition,which has promoted the rapid development of mergers and acquisitions of pharmaceutical enterprises in China and presented the characteristics of continuous mergers and acquisitions.In order to explore whether continuous mergers and acquisitions can bring positive influence to pharmaceutical enterprises,this paper takes East China Pharmaceutical as the research object,starts with the process and motivation of continuous mergers and acquisitions in East China Pharmaceutical,discusses the impact of continuous mergers and acquisitions on the company’s business structure,corporate governance structure and personnel structure,and further explores the impact of continuous mergers and acquisitions on the long-term and short-term performance of East China Pharmaceutical.And from the enterprise,industry,government three levels to draw a certain enlightenment.This paper finds that:(1)The impact of continuous mergers and acquisitions on the structure of East China Pharmaceutical company is mainly manifested as follows:(1)East China Pharmaceutical gradually reduces the low-margin commercial sector and promotes the high-margin industrial sector through continuous mergers and acquisitions,which makes the structure of the company’s three main businesses more reasonable;(2)The talent level and structure of the board of directors and the Board of supervisors are constantly optimized,the corporate governance structure is more sound,and the governance level is constantly improved;(3)The quantity and quality of human resources are improved and the personnel structure is more optimized.(2)The impact of successive mergers and acquisitions on the performance of East China Pharmaceutical is as follows: from the short-term performance,the CAR value of the six mergers and acquisitions of East China Pharmaceutical is greater than 0,and the average cumulative excess return(CAAR)in the window period shows a rising trend,and the merger and acquisition market shows a positive effect in the short-term;In terms of long-term performance,the company’s research and development ability,production management ability and marketing ability have been greatly improved,and its longterm performance is better than the industry average.