Biotechnological mergers and acquisitions: Features, trends and new dynamics

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Purpose – The purpose of this paper is to analyze the phenomenon of mergers and acquisition (M&A) in high-tech sectors with a special focus on biotechnological firms. Recent years have witnessed an impressive wave of M&As, but these operations, despite their popularity, have produced mixed results for their stakeholders and presented no systemic vision. Design/methodology/approach – The paper is descriptive and the result of a secondary data-based research. Methodologically founded on the works of Rossi et al. (2011, 2013) and following an extensive literature review on M&A processes in high-tech sectors, the paper analyzes the dynamics, trends and attributes biotechnological M&As. Findings – The biotechnology sector, over the economically turbulent past few years, faced a distinct difficulty in attracting significant investor capital. Traditional pharmaceutical companies with sufficient cash from their existing sales but facing a dried-out product and patent pipeline have acquired innovative, but cash-poor biotech firms. The findings indicate that the trends in the biotech industry make consolidation in this sector inevitable. For acquiring firms, therefore, it will be necessary to realize a rigorous process of strategic target identification, due diligence and unified post-merger integration as the only way to create a sustainable shareholder value and high firm performance. Research limitations/implications – The limitations of the paper are a consequence of its very nature, i.e. the fact that it is a descriptive, secondary data-based research. Further, empirical research is therefore necessary to test the findings, to refine the contextual parameters involved and to prescribe target-specific action. Originality/value – The value of the paper stems from its definition of the link between the biotech industry attributes andM&Aactivities, consequently offering a valuable theoretical basis for empirical development and practical application, as well as a context for prescribed actions and processes.

Original languageEnglish
Pages (from-to)91-109
Number of pages19
JournalJournal of Research in Marketing and Entrepreneurship
Volume17
Issue number1
DOIs
Publication statusPublished - 13 Jul 2015

Fingerprint

Biotech
Mergers and acquisitions
Secondary data
Industry
High-tech
Cash
Stakeholders
Nature
Firm performance
Post-merger integration
Investors
Pharmaceuticals
Patents
Shareholder value
Design methodology
Consolidation
Due diligence
Literature review
Empirical research
Biotechnology

Keywords

  • Biotech industry
  • Innovation
  • Knowledge management
  • M&A activities
  • Mergers and acquisitions
  • Pharmaceutical industry

Cite this

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title = "Biotechnological mergers and acquisitions: Features, trends and new dynamics",
abstract = "Purpose – The purpose of this paper is to analyze the phenomenon of mergers and acquisition (M&A) in high-tech sectors with a special focus on biotechnological firms. Recent years have witnessed an impressive wave of M&As, but these operations, despite their popularity, have produced mixed results for their stakeholders and presented no systemic vision. Design/methodology/approach – The paper is descriptive and the result of a secondary data-based research. Methodologically founded on the works of Rossi et al. (2011, 2013) and following an extensive literature review on M&A processes in high-tech sectors, the paper analyzes the dynamics, trends and attributes biotechnological M&As. Findings – The biotechnology sector, over the economically turbulent past few years, faced a distinct difficulty in attracting significant investor capital. Traditional pharmaceutical companies with sufficient cash from their existing sales but facing a dried-out product and patent pipeline have acquired innovative, but cash-poor biotech firms. The findings indicate that the trends in the biotech industry make consolidation in this sector inevitable. For acquiring firms, therefore, it will be necessary to realize a rigorous process of strategic target identification, due diligence and unified post-merger integration as the only way to create a sustainable shareholder value and high firm performance. Research limitations/implications – The limitations of the paper are a consequence of its very nature, i.e. the fact that it is a descriptive, secondary data-based research. Further, empirical research is therefore necessary to test the findings, to refine the contextual parameters involved and to prescribe target-specific action. Originality/value – The value of the paper stems from its definition of the link between the biotech industry attributes andM&Aactivities, consequently offering a valuable theoretical basis for empirical development and practical application, as well as a context for prescribed actions and processes.",
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Biotechnological mergers and acquisitions : Features, trends and new dynamics. / Rossi, Matteo; Thrassou, Alkis; Vrontis, Demetris.

In: Journal of Research in Marketing and Entrepreneurship, Vol. 17, No. 1, 13.07.2015, p. 91-109.

Research output: Contribution to journalArticle

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