| RESEARCH BACKGROUNDAs a basic guaranty for people's everyday life, pharmaceutical industry, which stands for functional genomic, pharmacogenetics, combinatorial chemistry, and high-output drug screening and so on, has well developed into a high-tech one. Being a part of knowledge economy, the competitive capacity of one nation's pharmaceutical industry in the global economy also illuminates its value generating power. At the meantime, the aging population, and especially the ever-elevating living standard of the people raise higher demand over the living quality. Such a trend leads to increasing market demand to pharmaceutical products. Analysis indicates that in 2002 the Chinese pharmaceutical market value will reach 25 billion US dollar, while in 2010 the figure will be 60 billion. The great market potential and importance of the industry is more than evident. In future, the market performance will decide the firm's growth, no matter it's multinational or Chinese local one. To dominate the domestic market is the key to success for Chinese local pharmaceutical companies, and such a success can further its ambition in the global market. Given the stated assumption, Chinese pharmaceutical industry should have the business strategy of dominating Chinese pharmaceutical market.Ever since the nation's opening up, needless to say, Chinese pharmaceutical industry experiences a leaping development. However, compared to the western peers, our pharmaceutical industry still suffers from low technique, lack of efficiency and profits. What's worse, under the threat of the foreign companies', our pharmaceutical industry faces urgent needs to improve itself. Realizing the approaching crisis, the government, experts, academics and management team come to the conclusion that the only way to escape the trap of defused resources and low competitivecapacity is to introduce large scale of merger and acquisition into the pharmaceutical industry. The decisive factors to a successful M&A and the future development of the companies are the sound financial decision and the financial solutions based on it. This article discusses the financial issues of the pharmaceutical industry's M&A.RESEARCH LOGIC AND METHODOLOGYMethodologies employed in this article include the combination of macro and micro analyzing methods, while we stress more on the later aspect. Firm M&A is the topic of business management, and also that of the economics. As they possess differing research angle, the research focuses and methodologies differ. From the aspect of corporation management theory, we lie more heavily on the design of financial strategy, target company selecting process, M&A price locating and payment methods design etc. The purpose underlying the article is to normalize and modify the firm behavior, control and reduce the possible risk during the M&A procedure. Under the economics norms, the research emphasizes M&A's background, conditions, driving factors, motivations, operating institutions and it's impact on micro and macro economics and so on. The research conclusion tends to modify the government behavior, eliminate the uncertain factors of the exterior environment. This dissertation relies more on microanalysis, and focuses on the firm behavior during the M&A process and its financial analysis.We combine the normative and positive methods while concentrating on the former method. The article first raises the concept of pharmaceutical M&A, and list out the primary financial conducts which influence the M&A effects. Then basing on the positive materials and empirical facts, we further support or modify the conclusion, and at the mean time offer financial solution to the financial analyzing behavior and steps occurred during M&Aprocess and improve on the normative research conclusion.From general to specifics, we utilize specifics to serve general. Firm M&A enjoys a long history and the factors which distract the M&A are various and complicate. And related materials are enormous and contradicting, while the inne... |
PDF Full Text Request