Importance. The problem of assessing the impact of the financial factoring on the value of mergers and acquisitions of pharmaceutical companies is very important due to several reasons. First, it is the patent collapse in the market of medicines. Second, it is the reduction of the pro-productivity in the creation of new blockbuster drugs. Third, it is the price pressure on the industry by the national governments, which is increasing in the period of post-crisis economic recovery.
Objective. The purpose of this paper is a theoretical formalization and econometric modeling of power and influence of the financial factors on the value of pharmaceutical companies in the processes of mergers and acquisitions in the industry market.
Methods. In this paper, using econometric methods have tested four hypotheses about the impact of financial parameters on the value of mergers and acquisitions in the pharmaceutical market. The first hypothesis is about the positive effect of the level of innovative activity of the target company, which is reflected in the value of its total assets, as well as in the amount of patents and goodwill. The second hypothesis is about the positive influence of the country and industry tax burden, which is reflected in the target company's net profit. The third hypothesis is about the positive effect of the level of cash flow of the target company at the time of the transaction, which is reflected in its operating income. The fourth hypothesis is about the positive influence of the share in the capital of the target company.
Results of analysis on a 5% level of significance, by a factor of determinate (R-squared), equal to 0.843 confirmed three of the four hypotheses.
Conclusion of the results of the research in this paper is to formulate recommendations to consider two factors in the processes of corporate integration of pharmaceutical companies. First, it is the amount and quality of total assets of a target company. Second, it is the net profit of a target company. The value of the research results is that the management of pharmaceutical companies is able to exercise strategic management of modern business, acting on identified key financial value drivers of M&A transactions.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.