Pharma M&A versus alliances and its underlying value drivers - Are M&A or alliances the right therapy for an ailing pharmaceutical industry?- A capital market perspective

This study analyzes 229 M&A and 120 in-licensing deals in the pharmaceutical industry. The author shows from a capital market perspective that M&A experiences significant, negative cumulative average abnormal returns whereas in-licensings are able to create value. Significant determinants of success for both strategies are derived.