Mergers, Acquisitions, And International Strategies In The Pharmaceutical Industry

1846 WordsFeb 7, 20187 Pages
2 MERGERS, ACQUISTIONS, AND INTERNATIONAL STRATEGIES Table of Contents Introduction 2 II- Merck's acquisition of Inspire Pharmaceuticals 3 Background 3 Rationale 4 III- Target firm: Inspire Pharmaceuticals, Inc. and its business & corporate strategies 5 Business level strategy: 6 Corporate level strategy: 6 IV- Merck & Co., Inc and its international consolidation strategy 6 Business level strategy 6 Corporate level strategy 7 References 8 Introduction 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. Pharmaceutical industry had already witnessed one of the largest acquisitions in the industry in 2009 (Pfizer's $68 billion acquisition of Wyeth and Merck's
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