Publication: Understanding the Motivations Behind Acquisitions in the Pharmaceutical and Biotechnology Industries
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2016-07-06
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Abstract
I study the set of pharmaceutical and biotechnology acquisitions from 1999 to 2011 and test possible motivations for these acquisitions. I find evidence that firms perform acquisitions when they are unable to replace drugs going off patent with drugs in their own pipelines and when their business models include acquisitions as a strategy to supplement internal R&D efforts. I find evidence against the theory that firms perform acquisitions in order to achieve economies of scale and scope.
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Economics, General
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