Mergers and acquisitions, technological efforts and exports: a study of pharmaceutical sector in India

Vyas, Vidhisha; Narayanan, K.; Ramanathan, Ananthakrishnan

doi:10.1080/2157930x.2013.828882

Cited by 9 publications

(11 citation statements)

References 22 publications

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“…Indian pharma companies have improved product quality and have lowered the cost of operations by enhancing research capabilities and exploiting M&A strategies (Beena, 2006; Meena, 2014). More specifically, Vyas, Narayanan, and Ramanathan (2013) highlighted that the strategy of M&As in the pharma sector could provide synergistic gains, complementing the benefits of each enterprise, mostly by exploiting the intangible assets included in structural capital, including production methods, product flexibility, and general management capabilities. M&As also generate very innovative lines of products, not necessarily with huge dimensions but with a straight focus on knowledge capabilities (Bahl, 2012; Gautam, 2011).…”

Section: Institutional and Scientific Foundationsmentioning

confidence: 99%

Ambidexterity's influence on export strategy development—The case of the Indian pharmaceutical industry

Kolte

Festa

Rossi

et al. 2022

Thunderbird Intl Bus Rev

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This study investigates the influence that business ambidexterity of the Indian pharmaceutical industry can exert on exports, after the evolution from producer—often with the support of foreign direct investments (FDIs)—to researcher. The growth rate of the sector has changed pace with the introduction of new rules regarding patents, impelling pharma enterprises to invest in research and development (R&D), also for the peculiar category of AYUSH. However, many aspects of this industrial evolution are, if anything, under researched. To fill this gap in knowledge, this research adopts a quantitative methodology on secondary data to investigate the effects and potentialities of ambidexterity, providing evidence from descriptive and inferential statistics. Insisting on traditional production of generics (exploitation) and investing in R&D (exploration) have been coherent with the rise in exports, but several factors still impede the development of the commercial potential of the Indian pharmaceutical industry, mostly due to low per capita health care spending, absence of reliable infrastructure, and severe market competition.

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Section: Institutional and Scientific Foundationsmentioning

confidence: 99%

Ambidexterity's influence on export strategy development—The case of the Indian pharmaceutical industry

Kolte

Festa

Rossi

et al. 2022

Thunderbird Intl Bus Rev

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“…Most companies have adopted M&A as a market expansion strategy rather than a technology enhancer, enlarging their product profile and reducing their business risk, although the Indian pharmaceutical industry has developed with increasing emphasis on innovation, research and new drug discovery (Rani et al, 2011). Vyas et al (2013) examined the Indian pharmaceutical sector regarding mergers, acquisitions and technological efforts towards the efficacy of exports. Sahu and Agarwal (2017) highlight that the principal elements of M&A in the industry are export intensity, import, R&D and firm size, and argue that M&A should also have a positive effect on profit margins.…”

Section: Issues and Challenges In The Indian Pharmaceutical Industrymentioning

confidence: 99%

“…Vyas et al (2013) examined the Indian pharmaceutical sector regarding mergers, acquisitions and technological efforts towards the efficacy of exports. Sahu and Agarwal (2017) highlight that the principal elements of M&A in the industry are export intensity, import, R&D and firm size, and argue that M&A should also have a positive effect on profit margins.…”

Section: Institutional and Scientific Backgroundmentioning

confidence: 99%

The contribution of intellectual capital to financial stability in Indian pharmaceutical companies

Festa

Rossi

Kolte

et al. 2020

JIC

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PurposeThis research investigates the top five pharmaceutical companies in India to determine whether their financial structures are sound and if they face the risk of bankruptcy, highlighting the potential contribution of intellectual capital (IC) to financial stability.Design/methodology/approachThe analysis outlines operating ratios, profitability ratios, possibility of bankruptcy (through Z-scores) and attractiveness of the financial structure (through the F-score), with consequent focus on (IC).FindingsThe financial structure of the selected companies seems stable. Changes in the Indian pharmaceutical scenario, above all, regarding the patent system, will force the companies to consider the impact of IC carefully.Practical implicationsIndian pharmaceutical companies need sustainability and development, with increasing focus on patent issues. To enhance innovation capabilities and overcome international competition, they should redesign their business orientation towards IC, mainly when impacting patents.Originality/valueUsing established approaches for predicting potential bankruptcy, this study focuses on the financial performance of top Indian pharmaceutical companies. IC can support financial stability, and this study provides further perspectives for managing their financial structure, both statically and dynamically.

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“…However, with industry being the unit of analysis and the size of industry being controlled, this may not be a serious limitation. Further, some of the existing studies in the Indian context have used either a dummy variable (i.e., Dummy = 1 for firms undertaking M&A activity and Dummy = 0 otherwise) (e.g., Vyas, Narayanan, & Ramanathan, 2013) or the number of deals (e.g., Basant & Mishra, 2014) or both (Vyas et al, 2012) to examine various implications of M&As. There are also studies that have applied logarithmic transformation on the number of deals (e.g., Di Giovanni, 2005; Piñeiro, Chaitany, & Tamazia, 2008; Wang, 2008), as it is done in the present article, to measure the extent of M&As.…”

Section: Model Specificationmentioning

confidence: 99%

Are Mergers and Acquisitions Necessarily Anti-competitive? Empirical Evidence from India’s Manufacturing Sector

Mishra¹

2018

Margin: The Journal of Applied Economic Research

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Policy initiatives and regulatory changes made during the last two-and-half decades of economic reforms have led to a considerable increase in the number of mergers and acquisitions (M&As) in the Indian corporate sector. Given the policy-induced flexibilities, while the domestic firms have taken the route of mergers to restructure their business and grow, the foreign firms have preferred to enter into specific markets through acquisitions and raise monopoly power therein. In this context, the present article attempts to examine the impact of M&As on market the structure in major industries of the Indian manufacturing sector during the post-reform period. Using a panel dataset of 34 major industries for the period 2001–2009, the article finds that M&As do not necessarily cause any appreciable adverse impact on market concentration. Instead, the degrees of sellers’ concentration are influenced by the growth of market, capital intensity, firms’ advertising efforts and their financial performance. The findings of the present article, therefore, suggest for a rethink on policies and regulations relating to M&A, international trade and intellectual property, as they play a significant role in enhancing firms’ competitiveness and restricting the emergence of a monopolistic power. JEL Classification: L1, L4, L5, O3

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Mergers and acquisitions, technological efforts and exports: a study of pharmaceutical sector in India

Cited by 9 publications

References 22 publications

Ambidexterity's influence on export strategy development—The case of the Indian pharmaceutical industry

Ambidexterity's influence on export strategy development—The case of the Indian pharmaceutical industry

The contribution of intellectual capital to financial stability in Indian pharmaceutical companies

Are Mergers and Acquisitions Necessarily Anti-competitive? Empirical Evidence from India’s Manufacturing Sector

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