Takeda Pharmaceutical Merger Analysis

Becoming a larger more efficient company with a strengthening competitive position opens up the opportunity for more mergers and acquisitions of competitors, suppliers and/or customers.

A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate

Introduction AstraZeneca PLC (AstraZeneca, AZN:NYSE, AZN:LSE) is one of the largest pharmaceutical companies in the world. It was formed in 1999 from the merger of Sweden’s Astra AB and UK’s Zeneca Group plc. Core Activities AstraZeneca is engaged in the discovery, development, manufacturing and marketing of prescription pharmaceuticals and biological products for important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory and Inflammation. One of the key benefits of the merger between Astra and Zeneca is seen as their portfolio of new products in development: AstraZeneca call this their 'product pipeline'.

One major objective of mergers is to be able to reduce or fully eliminate the weaknesses that may exit in

Mergers and acquisitions can be classified in terms of the direction of the growth. A horizontal merger/takeover is the combining of two firms in the same stage of production, for example Well come Pharmaceuticals merged with Glaxo Pharmaceuticals. This sort of integration takes place to combat competition from the market and secure market domination; to reduce risks and increase financial strength; and to compete in

The Pharmacia merger has expanded ITLT’s scope in establishing direction, strategy, and alignment of IT with the business needs. In place of 25 pharmaceutical products, we now have more than 1000 such products increasing our product portfolio, revenue, and geographical reach. The current ITLT won’t be able to address this enormous growth properly and requires significant structural and processual changes to better support Pfizer’s overall business needs.

This report provides an analytical strategic review of the global pharmaceutical industry; its origin, evolution,

Pharmaceutical industry is currently going through a phase of mergers and acquisitions. There are many underlying reasons for this 'now-accelerated' practice in the industry. Expiry of patents for blockbuster drugs, increasing costs of R&D, marketing, and federal drug development regulations, and increased rivalry within existing markets players has led largest players of the industry to consolidate by acquiring smaller firms. One recent instance in which an internationally operating pharmaceutical firm acquired a growing local firm of the U.S pharmaceutical industry was the acquisition deal between Merck & Co, Inc. and Inspire Pharmaceuticals, Inc. Inspire was the target company in this deal that cost $420 million to Merck. The offer was made Merck in 2011 after Inspire failed to pass clinical drug test for its cystic fibrosis treatment drug.

While we know our country’s business history is filled with mergers and acquisitions over the decades, the reasons behind this M&A activity are less obvious. We should now address the real issue of why companies merge. 3

In March 2015, one of the biggest mergers in India’s history happened between Sun Pharma and Ranbaxy, two major pharmaceutical players in the field. The merger was forecasted to bring about more than $250 million USD in synergies in the third year . Moreover, both of these established names were complementary in many of their core competencies, especially in areas of efficiency and expertise. Sun Pharma is known to be a global specialty giant with capabilities in dealing with the complex and niche territories of medicine, whilst Ranbaxy has a stronger global footprint in the sector of manufacturing generics (Jhawar, 2015). In fact, this was a move that was made in line with strategic approaches within the firm as seen in Figure

Mergers and acquisitions in the pharmaceutical sector since the last 10years to cope with the mutations of this sector.

United States law looks to possible anti-trust effects as a result of mergers. First, a merger may diminish competition by reducing the number of firms selling in the relevant market so that they can more successfully engage in coordinated interaction that injures consumers. Second, a merger may create a firm with sufficient market share that it can

The merging between two competing companies often results in increase in their market power. Although the merging of two top competitors and the giants in the market can raise suspicious activities, this isn’t the case in our scenario. The merging has being to the advantage of the customer who is always the top priority in the market industry. Although the merging has significantly boosted the quality of the package provided to the customer to produce a more robust package, the price of the product has remained the same at $3.00 per piece and in some instances; most of the products are being sold at a discount (Ravenscraft & Scherer, 2011). There are also more options for the customers to choose from and settle for the most

Controlling uncertainty, realizing economy of scale, enhanced product offering, synergy to be gained or acquiring a capability not previously realized? There are a number of different reasons why a company may attempt to merge or acquire another. For all the various explanations out there in the end the simplest explanation is the best. It is all about the money. Greater efficiencies, outputs, tax breaks, complementary products, vertical integration can all translate to money.

Pharmaceutical industry, the discovery, development, and manufacture of drugs and medications (pharmaceuticals) by public organizations and private organizations .Pharmaceutical companies may deal in generic or brand medications and medical devices . The pharmaceutical industry is responsible for the development, production and marketing of medications. Thus, its immense importance as a global sector is inarguable. In 2014, total pharmaceutical revenues worldwide had exceeded one trillion U.S. dollars for the first time. North America is responsible for the largest portion of these revenues, due to the leading role of the U.S. pharmaceutical industry . Sun Pharmaceuticals Industries Limited plans to acquire 85.1 per cent stake in Russian company Biosintez for US$ 24 million for increasing its presence in Russia through local manufacturing capability.