Competitive Advantage through Mergers and Acquisitions for Indian Pharmaceutical Companies

Tapan K. Panda, S. Sriram

Abstract


Indian Pharmaceutical Companies are on the lookout for merger and acquisition opportunity abroad. The study is an attempt to see the competitive advantages attained through such merger and acquisitions both in terms of cost and differentiation advantages. In more measurable terms the research studies the profitability and capability aspects of the merger and acquisition undertaken by Indian Pharmaceutical firms. It has been concluded that M&A in pharmaceutical sector provides competitive advantages to the firm. Both in terms of earning more resources or acquiring more capabilities, mergers and acquisitions have helped Indian pharmaceutical companies to grow and prosper. The study looked over eight years of data on company’s existence, financials and patent filings in every year. It is therefore inferred that the speed of innovation and profit margins can suitably be increased overtime by mergers and acquisitions.

Keywords: Merger, Acquisition, Business process, Cost advantage, Differential advantage and Patent valuation.


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