Mergers and acquisitions (M&As) are one of the most important strategies for pharmaceutical and the biotechnology industry to gain access to valuable technological resources in recent years. The M&As activities and outcomes of famous pharmaceutical company ¡V Roche, and biotech leading company ¡V Genentech were investigated in this study. Thus, the innovation, product pipeline and financial performance were examined to elucidate the crucial strategies of M&As.
Nowadays, the challenges of pharmaceutical company includes the growth rate of research and development (R&D) cost were higher than sales¡¦, new drugs development were slower than industry demand, licensing from other company and high profit patent drugs turned into generics. By innovative and vigorous development of biotechnology, biotech companies were devoted into niche products includes nucleic acid or protein drugs. However, large R&D expenditure and high risk product development result in capital shortage problems. The abundant working capital and well-experienced manufacture, marketing and sales characteristics of big pharma enable the M&As of pharma and biotech arise.
This study case describe the M&A of an over a century pharmaceutical company ¡V Roche with a first IPO biotech company ¡V Genentech. To survey the process of licensing, merger, acquisition and public offerings, the motivation, strategies and outcomes were examined. In 2006, over the half of top ten sales of Roche were derived from Genentech; therefore, the global marketing and brand value of Roche contribute Genentech into the top one market value biotech company. The synergistic effect seems the M&A is a perfect integration. However, the majority equity owned by Roche and the oversea sales licensing to Roche were the further underlying problems for Genentech to expand to the top health care company in the world.
The development of pharmaceutical company becoming more concentrated that the top ten pharmaceutics account for half of the global sales. Moreover, with the growing demand from the health care, aging and novel therapeutics and under the threatens of health insurance payment and patent drug expired, the tide of M&As for pharmaceutical and biotech companies will not decline. The weakness of Taiwan pharmaceutics is poor in innovation and generic drugs-oriented manufacture; furthermore, the biotech industry is still beyond maturity. Under the waves of M&As, the Taiwan pharmaceutical and biotech industry may prompt development by M&As. In this case study, the pharmaceutics and biotech background were first introduced and the case history, M&A process and strategies, product portfolio, R&D and financial issues were explored. Therefore, this study may fulfill and provide some suggestions and references for further pharmaceutical and biotech M&A activities in Taiwan.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0625107-104555 |
| Date | 25 June 2007 |
| Creators | Chang, Li-ching |
| Contributors | Chi-Cheng Wu, Jen-Jsung Huang, Cher-Min Fong, Tsuang Kuo |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0625107-104555 |
| Rights | not_available, Copyright information available at source archive |
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