VALUE CREATION THROUGH M&A IN THE PHARMACEUTICAL INDUSTRY: THE RECORDATI S.p.A CASE

This thesis explores the strategic and financial dimensions of mergers and acquisitions (M&A) in the pharmaceutical industry, focusing on Recordati S.p.A. as a case study. Through a detailed analysis of its five major acquisitions - Jaba, Orphan Europe, Opalia, Italchimici, and EUSA Pharma - the study evaluates their strategic rationale, market reactions, financial impacts, and contributions to long-term value creation. The research integrates event studies to assess short-term market responses to acquisition announcements, alongside financial analyses of valuation multiples, acquisition costs, and changes in key performance metrics such as revenue, EBITDA, and debt levels. The findings reveal that these acquisitions contributed significantly to Recordati revenue growth, profitability, and geographic expansion, while maintaining financial stability. Market reactions indicated positive investor confidence, particularly for acquisitions aligned with the company’s focus on rare diseases. The analysis underscores the strategic use of M&A to gain a competitive edge by focusing on niche markets with high barriers to entry and limited competition. This approach has expanded its product portfolio and capitalized on opportunities in rare disease treatments, benefiting from regulatory incentives and market exclusivity. The thesis concludes that Recordati disciplined M&A strategy has been pivotal to its financial success and market leadership, highlighting the importance of strategic focus, effective execution, and sound financial management in creating sustainable value through acquisitions.