The Competitive Reasons for Mergers and Acquisitions in Pharmaceutical Industry (1993-2015): The Case of the Largest Companies
DOI:
https://doi.org/10.18583/umr.v3i3.127Keywords:
International trade, mergers and acquisitions, intellectual property, pharmaceutical companiesAbstract
The article analyzes the trends and evolution of the items that explain the competitive positioning in the biggest pharmaceutical companies. The characteristics that are capable to explain their size are expenses (investments) in research and development (R&D), sales, expenses related to mergers and acquisitions. The results of the research using a longitudinal analysis of growth rates and Spearman correlations with a comparative approach, show that expansion, innovation and dominance grew considerably from the commercial opening and the protection of intellectual property (IP). Under this scheme, larger companies look for ensure their competitiveness through a constant effort in the expenses of research and development (R&D) to achieve patents that finish in medicines that will be a protected in legal terms (monopoly) and the acquisition of companies with intellectual property rights that in short or in inmediate term give them finished products thar are protected by a patent and are ready to be launched , this is how the uncertainty of innovation in the long term is reduced and the obtaining of results in the short term, because the patented products are more representative in the income of the dominant companies than their peers with less dominance. In this sense, the classical theory of mergers and acquisitions (economic expansion) seems to partially explain said operations in a context of free trade and internationalization.
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