Mergers & Acquisitions Update: Changing the Strategic Paradigm in the Global Generics Market

2009 ◽  
Vol 6 (4) ◽  
pp. 315-322 ◽  
Author(s):  
Vijay P. Karwal
Keyword(s):  
Pharmaceutical Sector ◽  
Market Environment ◽  
Growth Opportunities ◽  
Strategic Positioning ◽  
Merger Activity ◽  
Financial Strength ◽  
Generic Market ◽  
Investment Opportunities ◽  
The Future ◽  
High Investment

The generic pharmaceutical sector has witnessed an unprecedented level of mergers & acquisitions (M&A) activity in recent years. Companies are engaging in merger activity to strengthen their strategic positioning in response to the changing competitive landscape in the industry. In a growing global generic market, having adequate scale and financial strength will be key attributes to manage pressure on pricing and margins, capture growth opportunities globally, establish a competitive cost base, and be able to pursue high value but high investment opportunities in niche generics and biologics. The emergence of a tier of large leading generic companies as well as the renewed interest by big pharma in the generic market are forcing industry participants to determine their strategy and role towards the consolidation trend. In an industry that remains highly fragmented, the changing market environment is expected to lead to continued M&A activity which will change the shape of the industry in the future.

scholarly journals Dividend Policy Decisions in India: Standalone Versus Business Group-Affiliated Firms

2018 ◽  
Vol 20 (1) ◽  
pp. 133-150 ◽  
Author(s):  
Nishant B. Labhane
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Business Groups ◽  
Business Group ◽  
Business Risk ◽  
Policy Decisions ◽  
Financial Leverage ◽  
Dividend Payout ◽  
Investment Opportunities ◽  
High Investment

This study examines the determinants of two important dividend policy decisions specifically the dividend payment decision and the dividend payout level decision of 781 sample Indian firms enlisted on National Stock Exchange (NSE) over the period, 1995–2015, comparing the business group-affiliated firms with the standalone firms. In term of characteristics, the business group-affiliated firms are larger, more profitable and more levered than the standalone firms. The empirical results suggest that the dividend policy decisions of business group-affiliated firms differ significantly from that of the standalone firms. In the case of standalone firms, the firms with high investment opportunities, high financial leverage and high business risk are less likely to pay dividends, and their dividend payout levels are lower. On the other hand, the firms affiliated with business groups are more likely to pay dividends, and their dividend payout levels are higher even when they have high investment opportunities, high financial leverage and high business risk. Overall, the findings suggest that although the business groups are able to create internal capital markets (ICMs) and shield their member firms from market imperfections, they may suffer from other information asymmetry problems.

scholarly journals A Study on SWOT Analysis of Pharmaceutical Industry: The Bangladesh Context

2013 ◽  
Vol 2 (2) ◽  
pp. 200-208
Author(s):  
Meem Rafiul Hoq ◽  
Md. Ali Ahsan ◽  
Tanim–A Tabassum
Keyword(s):  
Pharmaceutical Industry ◽  
Swot Analysis ◽  
Jel Classification ◽  
Economic Factors ◽  
Pharmaceutical Sector ◽  
Threat Analysis ◽  
Industry Sector ◽  
Classification Code ◽  
Large Size ◽  
The Future

Pharmaceutical industry is one of the most important sector in Bangladesh. It is the only industry, which has its own strong manufacturing capabilities to produce the pharmaceuticals product. In this study it is tried to find out what types of strengths, weaknesses, opportunities and threats the pharmaceuticals companies face in Bangladesh. There are about 250 pharmaceuticals firms in Bangladesh. Among them some companies are the large size and more sophisticated. Some companies are small sizes and traditional qualities. A few companies dominate the whole medicine market. So they have to face severe competition in pharmaceuticals market. SOWT (Strength, Opportunity, Weakness, and Threat) analysis of any industry sector investigates the important factors that are possibility of the industry and influencing the companies operating in that sector. The purpose of this study is to analyze the pharmaceutical sector of Bangladesh using the framework of SWOT. This paper brings to light on the SWOT analysis of pharmaceuticals industry in Bangladesh and provided some valuables suggestions to overcome the weaknesses and threats, there are some suggestions to utilize the strengths and opportunities properly. Through this study the researchers try to discuss the affect of various macro-economic factors of strength, opportunity, weakness, and threat aspect on the industry and its related problems and prospects for the future. JEL Classification Code: O25; O25

Innovation through Generic Medicines: Is it Time for a Pan-European Policy?

2008 ◽  
Vol 6 (1) ◽  
pp. 3-8 ◽  
Author(s):  
Steven Simoens
Keyword(s):  
The United States ◽  
European Policy ◽  
Pharmaceutical Sector ◽  
Generic Medicines ◽  
Market Exclusivity ◽  
Number Of Factors ◽  
Generic Market ◽  
European Healthcare ◽  
Pricing And Reimbursement

This paper aims to report on the ‘Innovation through generics’ roundtable, which was convened at the European Parliament in April 2008 to discuss the role of generic medicines in stimulating innovation in the pharmaceutical sector. The roundtable identified a number of factors that hamper generic market entry in Europe and, thus, inhibit competition and innovation in the pharmaceutical sector. These factors include the decline in true innovation in the pharmaceutical sector; shortcomings in current patent and registration systems; pricing and reimbursement delays for generic medicines; greater intellectual property protection and market exclusivity for originator medicines than in the United States; price linkage between generic and originator medicines in some member states; and a lack of demand-side measures that encourage physicians, pharmacists and patients to use generic medicines. There is a need for a pan-European policy relating to patents, registration, pricing and reimbursement, prescribing and dispensing of medicines. In particular, the creation of an internal market will benefit European healthcare by helping to drive down costs. The overall goal should be to support competition and true innovation and, thus, provide sustainable healthcare for patients throughout Europe.

Competitiveness Improvement of Indonesian Logistics Service Providers a Conceptual Model and Future Research Framework

2015 ◽  
Vol 21 (4) ◽  
pp. 1049-1052
Author(s):  
Darjat Sudrajat
Keyword(s):  
Conceptual Model ◽  
Customer Value ◽  
Service Providers ◽  
Future Research ◽  
Logistics Service ◽  
Financial Strength ◽  
Logistics Service Providers ◽  
The Future ◽  
Innovative Capabilities ◽  
And Performance

Competitiveness has been a serious problem for Indonesia logistics service providers (LSP) particularly in the context of ASEAN Economic Community in 2015. Conceptually, some previous researches showed that the competitiveness could be improved through innovative capabilities and performance improvement. Nevertheless, these researches related only two of the three variables, namely between innovative capabilities and performance, innovative capabilities and competitiveness, and performance and competitiveness. These researches did not explain that the performance can be a mediator (intervening) variable for relationship between innovative capabilities and competitiveness (relationships of three variables). Based on the gap, this research aimed to develop the conceptual model, hypothesis and its dimensions for the future research. By using explanatory research design, a conceptual model of competitiveness improvement, hypothesis, and its dimensions were developed to be verified in the future research. The dimensions of the three variables included financial strength, customer value, technology/skills, shareholder value (competitiveness); profitability and growth (performance); sensing capability, combination capability, and relational capability (innovative capabilities).

Sovereign Wealth Funds in Central and Eastern Europe

2017 ◽  
Author(s):  
Piotr Wiśniewski
Keyword(s):  
Eastern Europe ◽  
Central And Eastern Europe ◽  
Performance Metrics ◽  
Macroeconomic Policy ◽  
Investment Climate ◽  
Growth Opportunities ◽  
Sovereign Wealth Funds ◽  
The Future

This chapter examines the Central and Eastern Europe (CEE) activity of sovereign wealth funds (SWFs) from two perspectives: CEE-based SWFs operating internationally and CEE as hosts to international SWF investments. The scales of both activities are marginal in global terms, yet the SWF footprint can be significant in isolated CEE industries or investment targets. While new SWFs are unlikely to emerge in CEE, the scale of global SWF allocation to the region is set to expand in line with diversification and growth opportunities. CEE should strive to improve its investment climate, including competitiveness of financial industries. The existing CEE-based (Russian) SWFs would benefit from deregulation, transparency and commitment to performance metrics, yet they remain a hostage to the future shape of Russian, and world macroeconomic policy.

scholarly journals Return on Asset dan Investment Opportunity Set dalam Memprediksi Dividend Payout Ratio Perusahaan Manufaktur Sektor Consumer Goods

2021 ◽  
Vol 4 (1) ◽  
pp. 13-22
Author(s):  
Moch Fathony
Keyword(s):  
Consumer Goods ◽  
Stock Exchange ◽  
Secondary Data ◽  
Return On Assets ◽  
Dividend Payout ◽  
Investment Opportunity Set ◽  
Investment Opportunities ◽  
Dividend Distribution ◽  
High Investment ◽  
A Company

Among factors that may be instrumental in affecting the dividend payout decision, this study aims to determine the effect of return on assets (ROA) and investment opportunities on dividend distribution in a company. Using secondary data from 10 Consumer Goods companies listed on the Stock Exchange in the period 2015 - 2019, the data were analyzed using panel regression using EVIEWS. This study found that ROA and investment opportunities can predict the Dividend Payout Ratio in the Consumer Goods Industry. The results suggest that the more profitable a company is, the more likely it is to pay high dividends. Also, high investment opportunities are good position increases a firm's ability to pay dividends.

scholarly journals Leverage and investment opportunities: the effect on high growth firms

2020 ◽  
Vol 31 (83) ◽  
pp. 302-317
Author(s):  
Rossimar Laura Oliveira ◽  
Eduardo Kazuo Kayo
Keyword(s):  
Capital Structure ◽  
Inverse Relationship ◽  
Negative Relationship ◽  
High Growth ◽  
Growth Opportunities ◽  
Dynamic Panel ◽  
Industry Growth ◽  
Investment Opportunities ◽  
Growth Firms ◽  
The Relationship

ABSTRACT The objective of this paper is to investigate if the high growth of a firm results in a reduction in its debt levels. This is expected to happen for firms that experience a positive idiosyncratic shock to their growth opportunities, which would affect their cash flow and profitability. Although the relationship between growth opportunities (e.g., Tobin’s Q) and capital structure has already been widely discussed from a conceptual viewpoint, there are still important empirical gaps, particularly due to the endogeneity of the first variable. This paper seeks to minimize these problems by operationalizing the concept of idiosyncratic technological shocks. This issue is relevant because the negative relationship between growth and leverage may indicate that for the most efficient companies there will be a reduction in bankruptcy cost and a reduction in agency costs for the least efficient companies. This paper contributes to the development of studies in the area by demonstrating the inverse relationship between growth and leverage, with the model and the variable that represents the positive shocks experienced by companies. The dynamic panel method enables an analysis of the variation in debt in relation to the variation in value using the first differences and controlling the lagged debt effect. To apply the model, we used data from Brazilian companies, covering 1995 to 2016. The main results show that the greater the ratio between the firm’s growth opportunities and its industry growth opportunities, the lower its leverage indicators. The complementary results suggest that less leveraged firms have this negative relationship to an even stronger degree.

scholarly journals Pengaruh Asimetri Informasi Pada Kebijakan Dividen Dengan Investment Opportunity Set Sebagai Variabel Pemoderasi

2018 ◽  
pp. 2040
Author(s):  
Ni Putu Linda Yasmita ◽  
Anak Agung Gde Putu Widanaputra
Keyword(s):  
Information Asymmetry ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Opportunity ◽  
Dividend Payout ◽  
Asymmetry Of Information ◽  
Investment Opportunity Set ◽  
Investment Opportunities ◽  
High Investment ◽  
A Company

The purpose of this study is to obtain empirical evidence of investment opportunity capability sets to moderate the influence of information asymmetry on dividend policy. This research was conducted at a manufacturing company listed on Indonesia Stock Exchange 2014-2016. Sampling method used is purposive sampling. The sample size is 30 with 72 observations. Technique Data analysis used is test of Moderated Regression Analysis (MRA). Based on the results of the analysis, it is known that the investment opportunity set is not as a moderator of the influence of information asymmetry on the dividend policy. This suggests that when firms have high investment opportunities with high levels of asymmetry, it is not necessarily that the company will pay low dividends or not share them to the shareholders, since management will manage earnings annually as reserves to be reinvested without reducing the proportion of dividend payout to investors. This study provides implications for investors as a consideration in investing in a company to see how the bid ask and dividend payout ratio of the company's shares. Keywords: asymmetry of information, investment opportunity set, dividend policy

Earnings and Firm Value in the Presence of Real Options

2020 ◽  
Vol 95 (6) ◽  
pp. 263-289
Author(s):  
Moritz Hiemann
Keyword(s):  
Real Options ◽  
Firm Value ◽  
The Real ◽  
Future Earnings ◽  
Time Dynamics ◽  
Investment Opportunities ◽  
The Future ◽  
Earnings Response ◽  
Profit Maximizing ◽  
Future Growth

ABSTRACT To explain the empirically documented nonlinear, non-monotonic relationship between earnings and firm value, it suffices to assume that firms continually take profit-maximizing decisions in response to newly arriving investment opportunities. The real options embedded in these opportunities create hysteresis effects that lead to the well-known, but so far poorly understood, negative earnings-to-value relation among loss-making firms. Optionality also predicts the future growth component of firm value to be a decreasing function of earnings among highly profitable firms. More generally, the dynamic options model implies an earnings-to-value mapping that can be non-monotonic even over narrow earnings intervals. The commonly used linear earnings-response estimation may, therefore, be a poor approximation even locally. These phenomena arise because optionality makes past and future earnings the product of an unobservable flow of opportunities and decisions whose time dynamics cannot be described by direct linear past-to-future extrapolation.

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