Title: Comparative analysis of mergers and acquisitions in Indian and international pharmaceutical industry with unique case-lets

Authors: Som Sekhar Bhattacharyya; Syed Naser

Addresses: National Institute of Industrial Engineering, Faculty Room No. 614, ALB, NITIE Campus, Vihar Lake Road, Mumbai, 400087, India ' Dr. Reddy's, H No. 16-9-874/A, Race Course Road, Old Malakpet, Hyderabad, 500036, India

Abstract: Mergers and acquisitions (M&A) have become a potent strategy for firms to secure inorganic growth but are also beset with challenges. Pharmaceutical industry has a unique nature due to higher involvement of science in product development and requires firms to develop distinctive and complex capabilities. In this study, the authors undertake a comparative study of different pharmaceutical cases to gather perspectives on M&A practices in Indian and international pharmaceutical industry. Frameworks developed by Bower (2001) and Dyer et al. (2004) are applied to different M&As to understand their applicability and use in Indian and international pharmaceutical contexts. The authors found that Indian firms undertake M&A to reduce R&D investments, to secure strategic resources and to expand product and market reach. Pharmaceutical firms from developed countries mostly acquire firms from developing market for sake of manufacturing knows how and for securing host market.

Keywords: mergers and acquisition; M&A; Indian pharmaceutical industry; international pharmaceutical industry; business performance.

DOI: 10.1504/IJBG.2020.107833

International Journal of Business and Globalisation, 2020 Vol.25 No.1, pp.112 - 136

Received: 07 Sep 2017
Accepted: 27 Mar 2018

Published online: 23 Jun 2020 *

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