Biotechnological mergers and acquisitions: features, trends and new dynamics. Issue 1 (13th July 2015)

• Record Type: Journal Article
• Authors: Rossi, Matteo; Thrassou, Alkis; Vrontis, Demetris
• Editors: Demetris Vrontis, Dr. Michael Christofi, Prof.
• Is Part Of: Journal of research in marketing and entrepreneurship. Volume 17:Issue 1(2015)
• Page Start: 91
• Page End: 109
• Publication Date: 2015-07-13
• Subjects: Innovation -- Knowledge management -- Pharmaceutical industry -- Mergers and acquisitions -- Biotech industry -- M & A activities; Entrepreneurship -- Periodicals; Marketing -- Periodicals; Electronic journals; 658.8
• DOI: 10.1108/JRME-07-2014-0013
• Languages: English
• ISSNs: 1471-5201

Abstract

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 and M & A activities, consequently offering a valuable theoretical basis for empirical development and practical application, as well as a context for prescribed actions and processes.