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

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  • Beena, S

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.

Suggested Citation

  • Beena, S, 2006. "Mergers and Acquisitions in the Indian Pharmaceutical Industry: Nature, Structure and Performance," MPRA Paper 8144, University Library of Munich, Germany, revised 28 Jun 2007.
    • Handle: RePEc:pra:mprapa:8144
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    References listed on IDEAS

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    1. P.L. Beena, 2000. "An analysis of mergers in the private corporate sector in India," Centre for Development Studies, Trivendrum Working Papers 301, Centre for Development Studies, Trivendrum, India.
    2. Weston, J Fred & Mansinghka, Surendra K, 1971. "Tests of the Efficiency Performance of Conglomerate Firms," Journal of Finance, American Finance Association, vol. 26(4), pages 919-936, September.
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    Cited by:

    1. Quan-Hoang Vuong & Nancy K. Napier & Donaldine E. Samson & Hong Kong Nguyen, 2013. "Empirical Evidence on Relationships between Ex Ante Innovation Pursuit and Post-M&A Performance in the Vietnamese M&A Industry, 2005-2012," Working Papers CEB 13-009, ULB -- Universite Libre de Bruxelles.
    2. Ian Rowlands, 2011. "Ancillary impacts of energy-related climate change mitigation options in Africa’s least developed countries," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 16(7), pages 749-773, October.
    3. Beena Saraswathy, 2010. "Cross-Border Mergers and Acquisations in India: Extent, Nature and Structure.July 2010," Working Papers id:3096, eSocialSciences.
    4. Vuong, Quan-Hoang, 2010. "Mergers & Acquisitions Market in Vietnam’s Transition Economy," OSF Preprints cnp74, Center for Open Science.
    5. Blyde, Juan S. & Volpe Martincus, Christian & Molina, Danielken, 2014. "Fábricas sincronizadas: América Latina y el Caribe en la era de las Cadenas Globales de Valor," IDB Publications (Books), Inter-American Development Bank, number 6668, November.
    6. Alhassan Musah & Mohammed Abdulai & Hilda Baffour, 2020. "The Effect of Mergers and Acquisitions on Bank Performance in Ghana," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 7(1), pages 36-45.
    7. Amit Soni & Avinash Chandra & Sumati Varma, 2020. "Impact of M&As on Employment in the Indian Information Technology (IT) Industry," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 311-329, June.
    8. Juan S. Blyde & Christian Volpe Martincus & Danielken Molina, 2014. "Fábricas sincronizadas: América Latina y el Caribe en la era de las Cadenas Globales de Valor," IDB Publications (Books), Inter-American Development Bank, number 86755 edited by Juan S. Blyde, February.

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    More about this item

    Keywords

    mergers; acquisitions; consolidation; pharmaceutical industry; performance;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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