Mergers and Acquisitions in the Global Pharmaceutical Industry

Project Report from the year 2006 in the subject Communications - Public Relations Advertising Marketing Social Media grade: 65 % - B University of Sunderland course: Global Corporate Strategy language: English abstract: Mergers and acquisitions are of major importance in the pharmaceutical industry. In order to evaluate the dynamics of this particular industry this paper critically evaluates the pre- and post- merger situation of GlaxoSmithKline concerning its ready-access to markets know-how and management capability. Furthermore strengths and weaknesses and merger's outcomes will be outlined. Critical push and pull factors affecting M&A activity in North America will be analysed using Pfizer and Pharmacia as an example. In addition general reasons for M&A failure in the pharmaceutical industry will be illustrated focussing on the M&A activity of GlaxoSmithKline. Finally using two global pharmaceutical players (GSK and Astrazeneca) the merits and demerits of the McKinsey's five step programme will be discussed.