Proceedings of the 24th International Academic Conference, Barcelona

MERGERS AND ACQUISITIONS IN PHARMACEUTICAL INDUSTRY AS A GROWTH STRATEGY: AN INVESTIGATION UPON PRACTICE

YASIN ÇİLHOROZ, CUMA SONĞUR, MEHMET GÖZLÜ, MURAT KONCA

Abstract:

Until the begining of 1990s, firms had been looking ways to attain the competitive advantage and increase their profitabilites depending on it by realizing economies of scale or benefiting from market failure. Nowadays, with the impact of globalization, particularly great companies have started to purchase other firms or merge with them as a growth strategy. Pharmaceutical industry has the first place where the mergers and acquisitions occur mostly. Among the drives that leads pharmaceutical firms to mergers or acquisitions; high costs of research and development, economies of scale, motivation for new markets, efforts to improve the existing marketing possibilities, trying to keep up with competition can be counted. The aim of this study is to discuss mergers and acqusisitions in pharmaceutical sector and to evaluate global pharmaceutical industry in this terms.

Keywords: Merger, Acquisition, Growth Strategy, Pharmaceutical Industry

DOI: 10.20472/IAC.2016.024.024

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