Mergers & Acquisitions: What will be the next trend? Share your opinion about pharma industry.
Submitted by lucky_pharmacist on Sun, 07/13/2008 - 06:42.
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Mergers & Acquisitions Megadeals wane, but consolidation continues (2006) by Joanne Grimley in C&EN stated that, “The era of the megamerger within the pharmaceutical and biotechnology industries appears to be at an end.” But is it really so, the recent trends show that the deals have gone really high and not dry, the deal of Ranbaxy was the big example of such event.
The fact files are really interesting and show rise in the M&A in the Pharma field. As I tried to represent in my last two blogs the recent happenings, not to go far the deals in May-June show business worth billions of dollars and still many deals are under cover, so what do you think about these trends? Do leave your comment.
http://www.pharmainfo.net/luckypharmacist/mergers-and-acquisitions
http://www.pharmainfo.net/luckypharmacist/mergers-and-acquisitions-trends-pharma-sector
Until a couple of years back, the news that Indian companies having acquired American-European entities was very rare. However, this scenario has taken a sudden U turn. Nowadays, news of Indian Companies acquiring a foreign business is more common than other way round.
Buoyant Indian Economy, extra cash with Indian corporate, Government policies and newly found dynamism in Indian businessmen have all contributed to this new acquisition trend. Indian companies are now aggressively looking at North American and European markets to spread their wings and become the global players.
What are your suggestions and views regarding the mergers and acquisitions by Indian companies and also of Indian companies? What do you think the trend is going to show in next three months, what will be its effect in the sector? Have answers, have opinions then just make them count pour in your comments and represent your view.
Discuss the theme and also ask your friends to read and suggest their opinions in this topic.
Dear Lucky..
After a long time I am back to join in our discussions...
Yes now a days it became common talk abt mergers & acquisitions,
From my side I hope that it will give fruitfull results if hands join together to have growth in the field and thereby expected benefits.
{eswar} G.S.N.Koteswara Rao
Hands joining together
Dear Eswar, Nice to see you back & commenting on so many topics. Your views are good but don't you think these mergers & acquisitions are killing the small companies and again bringing back to market the game of monopoly? Indeed for those companies which are in loss or are not able to grow these options are really good, but what about the companies which have good market but just to overtake some other company they go for such mergers or are acquired to kill the competition? Do give your opinion.
Well...
Well Dear Lucky..
I do agree with you..
But you just think of....
In one way, if we worry about the existence of small companies are we able to get development in the field which is possible only by gaints with huge investment..
In the other way everyone has to survive of their best and in our present discussion, in mysense small companies too survive based on their quality and forwardness and even are they unalb to co-operate with investors..
As you told, sometimes it is pity abt small scale persons.. For case, one practical example is:
I visited abouted 20-25 medical shops in vizag for some survey purpose, In that duration, the small guilty I heared from them is about CHAIN PPHARMACIES proposed by CARE, RELIANCE etc. They are fearing abt their future that "if chain pharmacies come into existence how we have to survive, no one will look over us.........."
I was really became dull after hearing to them and my thoughts were disturbed, but wht is the future. Dont we want society upgrading with chain pharmacies where we can really expect the services of pharmacist which is not available in small medical shops. Do you agree with me or not? Ofcoure we have to feel pity abt their survival, But No other option...
Sorry, I have taken you to a long read...Let us cut short...
Merging is not meant for killing the competition, It is for better encouragement and better improvement in the filed, I think So..by keeping the feelings aside, and if the others (small scales) too are really inspirative they will surely survive No Doubt at all..
These are my brief thoughts... Wht do ou say My Dear Lucky..
{eswar} G.S.N.Koteswara Rao
Dear Eswar, good to see your
Dear Eswar, good to see your discussion, I say we should also discuss about the Pharmacy shops in a separate blog or rather on our PharmIndia forum. It is a really good topic and deserves contribution from all those who are pharmacists.
About company issues yes to some extent it is true & I also accepted it and stated that M&A is good for those companies which are facing crises or are under severe problems in different aspects. But it has some loopholes and some cases are emerging where the M&A have lost their way & ended up in simple purchase of one by another or disputes after M&A causing problems in management.
We can discuss a lot in this issue.
Ofcourse...
Dear Lucky,
As we discussed, there will be two sides for a coin...
And we have to obey that fact....
Anyhow a pretty discussion went on... It's nice..
{eswar} G.S.N.Koteswara Rao
RE: pretty discussion
I wish to thank you all for this discussion, I was just putting my views & you all made this topic good for discussion. It’s all due to your participation or else it would have been just another blog. So thank you for the discussion.