Main Article Content
A study was undertaken to measure the pre- and post-acquisition financial performance of major pharmaceutical companies. Six companies, i.e., three acquiring (Daiichi, Mylan and Sanofi), and three target companies (Ranbaxy, Matrix Laboratories and Shantha Biotech) were selected and their performance three years before and after they underwent the acquisition process was measured using profitability, liquidity and solvency indicators. The study also involved a comparison of the post-acquisition performance of the acquired and target firms are faring after acquisition. Net worth of Mylan and Sanofi improved after acquisition, while that of Daiichi declined, but their liquidity and solvency deteriorated. Acquisition did not influence Ranbaxy, reduced the operational profits of Matrix Laboratories and reduced the profitability of Shantha Biotech, but failed to affect their liquidity and solvency.