Performance Of China's Pharmaceutical Industry Mergers And Acquisitions

Over the past decade, China's pharmaceutical industry has experienced a high-growth period. This is mainly due to increasing demand. First, the number of population continues to increase; secondly, the process of urbanization continues to accelerate; thirdly, the population structure tends to aging. But there are many problems in the pharmaceutical industry itself, such as small-scale production? homogeneous products?lack of innovation. To resolve the supply-demand mismatch in the industry, the government carries out health-care reform and encourages mergers and acquisitions within the industry.This thesis tries to research M & A performance of the pharmaceutical industry. Research method is case analysis, which uses CR purchasing Tianhe pharmaceutical as the typical case. First summarizes mergers and acquisitions motives in China's pharmaceutical industry, and then finds a typical case to study short-term and long-term M & A performance in order to find out M & A performance of the entire pharmaceutical industry.In this thesis, the method of short-term M & A performance is stock price analysis, the method to study long-term performance are financial analysis and EVA(economic value added) indicator analysis. Stock analysis is to study the cumulative abnormal returns; financial analysis method is to study selected twelve indicators of four dimensions; EVA index analysis method is mainly to calculate economic growth value. The conclusion is M & A in the pharmaceutical industry can really create value. And in the end, this thesis gives some advice on how to improve the M &A performance.