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Impact of mergers & acquisitions on research productivity within the pharmaceutical industry

Author

Listed:
  • Michael E. D. Koenig

    (College of Information & Computer Science, Long Island University Brookville)

  • Elizabeth M. Mezick

    (Long Island University)

Abstract

Several major econometric studies have looked at mergers and acquisitions (M&As) across various industries and concluded that, in general, there is no synergy created or released by M&A activity. This investigation concentrates upon research and development (R&D) performance in the pharmaceutical industry to examine the impact of M&A activity on corporate productivity. Findings indicate that, when compared to those companies within the pharmaceutical industry that did not experience merger activity during comparable time periods, as well as to the industry as a whole, pharmaceutical companies that merged were able to achieve more favorable post-merger productivity scores than were attained prior to their merger.

Suggested Citation

  • Michael E. D. Koenig & Elizabeth M. Mezick, 2004. "Impact of mergers & acquisitions on research productivity within the pharmaceutical industry," Scientometrics, Springer;Akadémiai Kiadó, vol. 59(1), pages 157-169, January.
    • Handle: RePEc:spr:scient:v:59:y:2004:i:1:d:10.1023_b:scie.0000013304.40957.0d
    DOI: 10.1023/B:SCIE.0000013304.40957.0d
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    References listed on IDEAS

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    1. Jensen, Elizabeth J, 1987. "Research Expenditures and the Discovery of New Drugs," Journal of Industrial Economics, Wiley Blackwell, vol. 36(1), pages 83-95, September.
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    Cited by:

    1. Ming-Chao Huang & Shih-Chieh Fang & Shao-Chi Chang, 2011. "Tracking R&D behavior: bibliometric analysis of drug patents in the Orange Book," Scientometrics, Springer;Akadémiai Kiadó, vol. 88(3), pages 805-818, September.
    2. Torsten Gerpott, 2009. "Forschung & Entwicklung und technologieorientierte Unternehmensakquisitionen," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 20(1), pages 9-41, May.
    3. Unsal, Omer & Rayfield, Blake, 2019. "Institutional investors and medical innovation," The Quarterly Review of Economics and Finance, Elsevier, vol. 74(C), pages 190-205.
    4. Elisa Barbieri & Manli Huang & Shenglei Pi & Mattia Tassinari, 2017. "Restructuring the Production of Medicines: An Investigation on the Pharmaceutical Sector in China and the Role of Mergers and Acquisitions," IJERPH, MDPI, vol. 14(10), pages 1-21, October.

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