A rise in mergers and acquisition (M&A) deals has been witnessed in recent past as a result of mounting health care costs, escalating research and development budgetary requirements, liberalization, and globalization. The Indian drugs and pharmaceutical sector is not untouched by these M&A waves. The M&A help the Indian pharmaceutical industry to improve global competitiveness, move up the value chain, create and enter new markets, increase their product offerings, and compensate for continued sluggishness in their home market. In fact, pharmaceutical industry is currently the most aggressive overseas investors of all Indian industries. However, adverse financial effects, antitrust action delaying or preventing of proposed merger, limited flexibility and sophisticated structure, and time-consuming process cannot be overlooked. Still, the drive to enhance the size and thereby attaining higher economies of scale has motivated many companies to adopt M&A path. The future holds a lot as the trend is likely to continue with many companies from developing countries, particularly India.
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