Mergers and Acquisitions in the Indian Pharmaceutical Industry: Nature, Structure and Performance

Beena, S (2006): Mergers and Acquisitions in the Indian Pharmaceutical Industry: Nature, Structure and Performance.

Abstract

This paper tries to address the extent, nature and impact of the recent surge in consolidation strategies especially in the form of mergers and acquisitions followed by the firms in the Indian pharmaceutical industry. The study found that many of the firms are implementing these strategies in the new context of globalisation mainly to overcome the acute competition arising out of the pro-market reforms and to strengthen their market portfolio. The study reaches the conclusion that the consolidation strategies followed by the firms enabled them to cut down the wasteful expenses to a greater extent and which resulted in better performance of the merging firms compared to the non-merging firms in this industry.

• Item Type: MPRA Paper
• Language: English
• Keywords: mergers; acquisitions; consolidation; pharmaceutical industry; performance
• Subjects: L - Industrial Organization > L6 - Industry Studies: Manufacturing; G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance; L - Industrial Organization > L8 - Industry Studies: Services > L80 - General

References

Beena (2000), “An Analysis of Mergers in the Private Corporate Sector in India”, Working Paper No: 301, CDS. -------------------------------------------------------- Beena (2004), “Towards Understanding the Merger-wave in the Indian Corporate Sector: A Comparative Perspective”, Working Paper No: 355, CDS ------------------------------------------------------------ Beena S (2006), “Mergers and Acquisitions in the Indian Pharmaceutical Industry: An Exploratory Analysis”, M. Phil Dissertation submitted to the Jawaharlal Nehru University, New Delhi. ------------------------------------------------------------ Catherine, M (1999), “Market Structure, R&D and Advertising in the Pharmaceutical Industry”, The Journal of Industrial Economics, Vol. XLVII, No. 2, pp.169-194. ---------------------------------------------------------- Centre for Monitoring Indian Economy -------------------------------------------------------- Mueller, Dennis (1980), “The Determinants and Effects of Mergers “, Cambridge, Mass : Oelgerschlager, Gunn and Hain Mueller, Dennis (1984), “Mergers and Market Share”, Review of Economics and Statistics, Vol. 67, May, pp 259-267. ----------------------------------------------------------- Mueller, Dennis (1987), “The Corporation: Growth, Diversification and Mergers”, University of Maryland, USA. ------------------------------------------------------------- Penrose (1959), “The Theory of the Growth of the Firm”, Blackwell, London. ---------------------------------------------------------- Pillai, P. Mohanan (1984), “Multinationals and Indian Pharmaceutical industry”, Kerala Sastra Sahitya Parishat, Thiruvananthapuram. ---------------------------------------------------------- Pillai, P. Mohanan (1987), Policy Intervention and Response: A Study of the Pharmaceutical industry in India during the Last Decade”, Working Paper No. 218, Centre for Development Studies, Thiruvananthapuram. ----------------------------------------------------------- Pillai, P. Mohanan and Jayasree Shah (1988), “Multinational Corporations and National Technological Capability”, Sardar Patel Institute of Social and Economic Research, Ahmedabad. ------------------------------------------------------------ Pitelis, N. Christos (2003), “Privatisation, Regulation and Domestic Competition Policy”, in Competitiveness Strategy in Developing Countries: A Manual for Policy Analysis ed., by Ganeshan Wignaraja, pp 239-273. ---------------------------------------------------------- Ravenscraft and Scherer, FM. (1989) “The Profitability of Mergers”, International Journal of Industrial Organisation, Vol.7, No.1, pp 101-116. ----------------------------------------------------------- Scherer (1980), “Industrial Market Structure and Economic Performance”, Chicago. ---------------------------------------------------------- UNCTAD (1993), ‘Concentration of Market Power, (through mergers, take-overs, joint ventures and other acquisitions of control), and its Effects on International Markets (in particular the markets of developing countries), UN, New York. ----------------------------------------------------------- UNIDO (1978), “The Growth of the Pharmaceutical industry in Developing Countries”, UN, New York. ---------------------------------------------------------- Weston and Mansighka (1971), “Tests of the Efficiency Performance in Conglomerate Firms”, Journal of Finance, Vol.26, September, pp 919-936. ------------------------------------------------------------ World Investment Report (2000), “Cross Border Mergers and Acquisitions and Development”, UNCTAD, New York and Geneva. ------------------------------------------------------------