Research On Risk Management Of Multinational Mergers And Acquisitions Of Pharmaceutical Enterprises

Pharmaceutical industry is our country's livelihood industry,which is closely related to the development of national economy and is highly valued by the state.In recent years,the state has gradually promoted the "two-vote system" policy to the whole country,proposed a unified evaluation of the quality and efficacy of generic drugs,and constantly strengthened the supervision of the pharmaceutical industry.More and more policies have promoted the integration of the pharmaceutical industry,so the industry has developed steadily.However,compared with developed countries,the concentration of domestic pharmaceutical industry is not enough.The three major pharmaceutical companies in the United States account for more than 90% of the market share,while the top 100 pharmaceutical companies in China only account for about 40% of the market share.There are many problems in Chinese pharmaceutical enterprises,such as insufficient attention to investment in research,lack of the research and innovation ability,and generic drugs account for a large share of the market.Therefore,pharmaceutical enterprises hope to quickly enter the foreign market through cross-border mergers and acquisitions.They also hope to absorb foreign high-quality resources,obtain overseas sales channels,speed up the simplification of drug declaration and registration,and enhance the core competitiveness of enterprises.Although mergers and acquisitions in the pharmaceutical industry are in full swing,there are not a few cases of failure.Therefore,this paper focuses on the analysis of risks and risk management measures in cross-border mergers and acquisitions of pharmaceutical enterprises.Based on the characteristics of the development of China's pharmaceutical industry and the status of cross-border mergers and acquisitions,this paper chooses a representative case of cross-border mergers and acquisitions in the pharmaceutical industry-Fosun Pharma mergers Gland Pharma for research.Over the years,Fosun Pharma has taken the strategy of "endogenous growth,extension expansion and integrated development" as its development strategy.Through continuous mergers and acquisitions,it has achieved rapid expansion,constructed distribution channels,and formed a holographic industrial chain of "drugs + instruments + services".Its mergers and integration capabilities are at the forefront of the industry.Fosun Pharma 's acquisition of GlandPharma cost a lot of money,and the process of acquisition was tortuous.Therefore,the paper divides the risks into three parts : the whole risk,merger implementation risk and merger integration risk.The whole risk includes political and legal risks,the merger implementation risk includes selection risk,valuation risk and payment risk and the merger integration risk includes resource integration risk and goodwill impairment risk.This paper analyzed the measures of Fosun Pharma to deal with various risks,and put forward some suggestions on risk management of transnational mergers and acquisitions of pharmaceutical enterprises in order to help improve the success rate of internationalization strategy of pharmaceutical enterprises in China.