Topic > Mega Mergers in the Pharmaceutical Industry - 1575

When two companies decide to join forces and become a bigger and richer mega company, it is called a merger. This process forms a new society, combining the money and ideas of what were two different entities into one. This, however, is not the only result that comes from the merger of two different companies, and since we will be talking about the merger of two companies in the pharmaceutical industry, the impact will be incredible. Of course, the merger of two companies will not only have positive impacts, but will also have many negative side effects. Furthermore, depending on the size of the merging companies and the goals of the people leading these companies, there will always be contradictions depending on the long-term goals or short-term goals depending on the interests of both parties. Our company, Verduga Inc., is considering merging with Coronado-Salinas Inc., so before rushing into such a merger we must contemplate the positives and negatives of such a move. When it comes to mergers there are always many possible positive and negative impacts due to the effects of the merger; these effects have a broader impact on the fields of research and development, on employment and management, on stocks and shareholders, on monopolization and ingenuity. In recent years, the price of research and development has skyrocketed, making it very difficult and expensive to bring new drugs to the market. the market. Companies are spending more of their sales profits on research and development than ever before. Now, looking at it this way, a newly merged company will have such high profits and revenues that it will have the opportunity to spend as much as it wants on research and development, without money being an issue or a concern. Technology is improving day by day, and as companies merge, these companies will merge technologies and merge their research advancing their advancements exponentially. Our company, Verduga Inc., has recently wasted a lot of money on research and development. If we were to merge with Coronado-Salinas Inc., we would see a significant increase in the amount of capital available to us to use in research and development. The downside is that research and development sometimes turns out to be just research. Large companies can become overconfident and after having achieved a couple of results they may become too compulsive and spend too much on research and development.