FEATURES OF MERGERS AND ACQUISITIONS IN THE PHARMACEUTICAL INDUSTRY

Abstract

ncreasing mergers and acquisitions in the pharmaceutical industry have raised fears that unprecedented market concentration will weaken competition. Two of the most important concerns for the pharmaceutical industry are concerns that these mergers will reduce the market for new developments, and concerns that the combination of large marketing efforts and sales will increase the influence of individual pharmaceutical manufacturers and weaken competition in the industry. This article argues that none of the above dangers are systematically justified. However, there is a potential risk of market concentration at the stage of regulatory approval of mergers and acquisitions. The rapid development of the pharmaceutical industry in a pandemic leads to the need to combine interests. That is why the consideration of the topic of mergers and acquisitions on the example of the pharmaceutical industry is very relevant. The article identifies how these structural changes contribute to the current wave of mergers among active pharmaceutical market participants and how the potential harm of competition can be reduced.