Health Care and Pharmaceutical Industry

Hence consolidation can be in the form of merger between two or more pharmaceutical companies, acquisition of one pharmaceutical company by another, merger or acquisition between a formulations company and a bulk drugs company terming which as vertical integration will be more appropriate. There can also be mergers or acquisitions between a health care industry and a pharmaceutical industry, a form of vertical integration. All these activities centre around one goal, that is consolidation. The generic meaning of consolidation is strengthening. Hence consolidation is for obviously strengthening of merging entities. The question this proposal however poses is who the beneficiaries of the consolidation are. The stakeholders in the consolidation process are shareholders of the company, its consumers, its suppliers, its customers, its employees, Government and environmentalists. Apart from them, behind the scenes are the consultants and the directors of the company who manipulate consolidation. This proposal will undertake a detailed study as to who the real beneficiaries of consolidation are. This is the research question the proposed research will address for which purpose detailed literatures review will be undertaken.
The very question presupposes existence of a problem of who actually the beneficiaries are in consolidations. There are bound to be vested interests beneath the surface and in the deliberate hostile takeovers. Problem viewed in this context, the research question gains significance as to whether consolidations are serving the interests of stakeholders or the vested interests which may be against public policy. The outcomes examined on case by case basis may be mixed. Therefore the study has to see the overall impact of consolidations in health care and pharmaceutical industry. To this extent, the issue is problematic and answer is not readily forthcoming without a deep research into the subject.
Objectives of Research
To examine the benefits of consolidations.
To ascertain risks associated with the consolidations.
To make a comparative study with consolidations in other industries and ascertain why pharmaceutical or health care sector is unique .and
To arrive at a balanced view for future policy.
PART 2: Literature Review
This part of the paper is important in that literature review is part of the research methodology by which the researcher will examine data already available on the subject of study. In research parlance this is the secondary data through which the research questions raised in the study will be likely to be answered if the data so gathered is adequate. Generic drugs manufacturing companies were once poor relations of the pharma industry. But they have now grown and attained international stature via acquisitions. In 2006, the generic drugs’ sales all over the world were $ 77 billion. (URCH)
Shukla (2006) states that pharmaceutical companies across the world persuade their counterparts for consolidation with a view to benefit from their respective core competencies in various segments of R &amp. D, manufacturing and unique marketing opportunities in a global setting. Pharmaceutical comp