Are There Short-Term Benefits In Mega Mergers?

Using economic-return analysis, the Chicago, USA-based consulting firmAT Kearney found that companies such as Amgen and Astra which have narrowly focused on a few markets, have generated stronger returns than firms involved in mega mergers.

In a study to be published next month but released to Reuters in advance, Kearney found that none of the recent pharmaceutical mega mergers have won near-term gains for the firms involved.

And most pharmaceutical companies could boost their stock prices by as much as 50% through even partially adopting best-industry practices in supply chain management and marketing, according to the Kearney study.