Research On The Motivation And Performance Of Fosun Pharma's Acquisition Of Gland Pharm

As an important part of our country’s strategic layout,especially in the 2020Covid-19 pandemic,the pharmaceutical industry has become the focus of attention.Strengthening competition in the internal market and deepening healthcare reform,more and more pharmaceutical enterprises choose to increase their development potential and enhance their core competitiveness through cross-border M&A,in recent years,the number and amount of cross-border M & A transactions are increasing,which shows that cross-border M & A has gradually become an important way for the development of our pharmaceutical enterprises.However,in many M&A cases,due to factors such as policy changes in the countries where the M&A parties are located,the suitability of the two companies,the degree of understanding of the acquired party,and whether the integration can be successfully completed after the M&A,many pharmaceutical companies’ cross-border M&A did not achieve the desired effect,and the performance of the companies after the M&A not only did not increase but also decreased,which eventually led to the failure of the cross-border M&A of pharmaceutical companies.Therefore,it is of great significance to probe into the specific motivation of cross-border M & A of pharmaceutical enterprises,and to analyze whether the cross-border M & A has brought the technological breakthrough for the enterprises and whether it has achieved the expected benefits of the enterprises.Using a combination of theory and practice,this paper selects the case of Fosun Pharma’s M&A of Gland Pharma in India as the research object.Through the study,it is found that Fosun Pharma actively conducted cross-border M&A driven by the combination of internal and external factors such as introducing talents and technologies,achieving economies of scale,and national policy support.In addition,the M&A performance of Fosun Pharmaceuticals was analyzed through event studies and financial index analysis,and it was found that Fosun Pharmaceuticals made sufficient preparations before the M&A,and after the M&A,Fosun Pharmaceuticals was able to give full play to the advantages of both parties and actively integrated the M&A,which led to a significant positive impact on its market performance,a good financial performance,a significant increase in the R&D capability of the enterprise in the non-financial performance,and the scale utility to be improved.Finally,according to the M&A case of Fosun Pharmaceuticals,we put forward corresponding inspirations and suggestions,such as Chinese pharmaceutical companies should choose a globalization strategy suitable for themselves in cross-border M&A,choose M&A targets in line with strategic planning,choose authoritative institutions to fully understand the target companies,etc.,hoping to provide certain experience for cross-border M&A of Chinese pharmaceutical companies,enhance the performance of companies after M&A,and improve the success rate of cross-border M&A of pharmaceutical companies.