Abstract

http://ssrn.com/abstract=921930
 
 

Citations



 


 



The Outsourcing of R&D through Acquisition in the Pharmaceutical Industry


Matthew John Higgins


Scheller College of Business, Georgia Institute of Technology; National Bureau of Economic Research (NBER)

Dan Rodriguez


Emory University - Department of Organization & Management


Journal of Financial Economics, Vol. 80, 2006

Abstract:     
We examine the performance of 160 pharmaceutical acquisitions from 1994 to 2001 and find evidence that on average acquirers realize significant positive returns. These returns are positively correlated with prior acquirer access to information about the research and development activities at target firms and a superior negotiating position. A unique Desperation Index is employed to determine the current status of a firm's internal productivity. We find that firms experiencing declines in internal productivity or which are more desperate are more likely to engage in an outsourcing-type acquisition in an effort to replenish their research pipelines.

Keywords: Acquisitions, Asymmetric information, Pharmaceutical industry

JEL Classification: G34, D82

Accepted Paper Series


Not Available For Download

Date posted: August 8, 2006  

Suggested Citation

Higgins, Matthew John and Rodriguez, Dan, The Outsourcing of R&D through Acquisition in the Pharmaceutical Industry. Journal of Financial Economics, Vol. 80, 2006. Available at SSRN: http://ssrn.com/abstract=921930

Contact Information

Matthew John Higgins (Contact Author)
Scheller College of Business, Georgia Institute of Technology ( email )
800 West Peachtree Street
Atlanta, GA 30308
United States
404-894-4368 (Phone)
404-894-6030 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Daniel Rodriguez
Emory University - Department of Organization & Management ( email )
750 Seventh Avenue
33rd Floor
New York, NY 10019
United States
(845)242-3477 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 632

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.484 seconds