Research on the Current Merger & Acquisition(M&A) of Chinese Medicinal Industry

Abstract

Currently,Chinese medicinal industry is in the transformation period from the low valley to the road of gradual recovery,and the medicinal MA market begins to enter the recovery stage to accomplish the source integration.The internal cause of large-scale MA in medicinal industry is that the development of the scale economy requests an exaltation of integration.And the external cause is that a series of restructure policies from government in medicinal industry and the competition pressure from foreign capitals urge the internal integration to enhance the resistance ability.The result of MA in medicinal industry makes the industrial concentration degree be increased,the situation of the oligarch monopolization and the industrial cluster occur initially,the economic profits centralize towards the advantage enterprises,and the negative profit area of the industry be extended continuously.