Analysis Of The Motivation And Performance Of Shanghai Pharma' Acquisition Of Cardinal China Business

In recent years,many industries at home and abroad have made the industry more in-depth development and more new history industry reshuffles through M&A.Especially in the impact of the fifth wave of mergers and acquisitions in the world,the M&A behaviors of various enterprises in China have increased year by year.The scale of M&A is also expanding,and the pharmaceutical industry which is related to people's livelihood is no exception.The new era has put forward stricter,more standardized,more detailed and more humane requirements for pharmaceutical industry in China.The pharmaceutical industry is also facing a new pattern of development opportunities and challenges.With the development trend of people's diversified demand for medical,and the fact that the pharmaceutical industry itself has relatively high demand elasticity and business risks,it is difficult to defend against peer companies,circulation companies and new Internet companies.Therefore,pharmaceutical manufacturing and commercial enterprises are increasingly committed to integrating resources,to extend the industrial chain,and taking M&A as an important way and development model for its stability and expansion.M&A can broaden the direction of enterprise development,expand the scope of business,optimize the development of industrial chain,enhance the ability of enterprises of innovation,achieve economies of scale,reduce operating costs,increase profit margins,and enhance sustainable development.According to relevant statistics,the success rate of M&A in China is not very high,and some have not achieved the desired M&A effect,but many companies are still actively carrying challenges and exploring on the road of M&A.This paper adopts the successful M&A case of Shanghai Pharmaceuticals' acquisition of Cardinal China business in 2017,conducts different multi-angle analysis and research on the case.The main content and conclusions of this paper are as follows:(1)Through the analysis of development background of the pharmaceutical industry,the acquisition resolution and the specific situation of the two companies,the motivation for Shanghai Pharmaceutical to acquire Cardinal China business is obtained;(2)Through the analysis of financial indicators,from four aspects of solvency,operational capability,profitability and development capability,as well as horizontal and vertical analysis of Shanghai Pharmaceutical's business performance before and after M&A,the results show that Shanghai Pharmaceutical's profitability and development ability after mergers and acquisitions have been improved;(3)The analysis of EVA index calculation of Shanghai Pharmaceutical is positive after M&A,indicates that the merger brings positive performance to company;(4)Through the above analysis,it is known that Shanghai Pharmaceuticals' acquisition of Cardinal China business is a successful M&A case.Other domestic pharmaceutical companies can borrowed and accept some detailed,practical and instructive M&A advice and inspirations.