Jincheng Pharmaceutical M&A Risk Management Research

With the continuous development and progress of the pharmaceutical industry,its development prospects are good.With the continuous introduction of national pharmaceutical policies,many pharmaceutical enterprises begin to carry out mergers and acquisitions for the purpose of improving their own industrial chain and quickly obtaining pharmaceutical resources.However,due to the complexity of merger and acquisition activities and the particularity of the pharmaceutical industry as a national key regulated industry,the high frequency of mergers and acquisitions in the pharmaceutical industry is accompanied by high risks.In this context,this paper hopes to provide some guidance and Suggestions for the risk management of mergers and acquisitions of pharmaceutical enterprises through the study of merger and acquisition theories and the analysis of specific cases of mergers and acquisitions of pharmaceutical enterprises.At present,most case studies on mergers and acquisitions in the pharmaceutical industry focus on financial risks and performance evaluation,and there are few studies on the risks of mergers and acquisitions in the pharmaceutical industry as a whole.Therefore,this paper hopes to take this article to help prepare or ongoing mergers and acquisitions of pharmaceutical enterprises to provide some help,reduce the risk of mergers and acquisitions.In this paper,the risk management system of pharmaceutical mergers and acquisitions is established,which integrates the unique risks of the pharmaceutical industry and the high-risk points of pharmaceutical mergers and acquisitions.The general process of merger and acquisition risk management--risk identification,risk assessment and risk management--is integrated into the whole process of merger and acquisition of pharmaceutical enterprises.Be able to do both targeted and cover the entire m&a process.The case of merger and acquisition of langyi pharma by jincheng pharma was selected and combined with the risk management system of merger and acquisition of pharmaceutical enterprises,to analyze the experience and deficiencies of jincheng pharma in this merger and acquisition activity.Specific Suggestions are put forward: it is necessary to strengthen the risk assessment,strengthen the control of high-risk points,reasonable valuation method can reduce the valuation risk,and choose the appropriate financing method based on the company’s financial situation.The analysis and research have the following enlightenment :(1)the pharmaceutical enterprises need to strengthen the systematic management of merger and acquisition risk,strengthen the attention to the high risk point of merger and acquisition;(2)government departments can establish data areas for exclusive mergers and acquisitions of pharmaceutical enterprises,so that data can be compared for reference when evaluating target companies.(3)do not only pay attention to the wind direction in mergers and acquisitions,but also pay attention to the unique risks of the industry.