STRATEGIC SHIFTS IN THE PHARMACEUTICAL INDUSTRY: M&A AND SPIN-OFF TRENDS THROUGH THE JOHNSON&JOHNSON’S CASE STUDY

Mergers, acquisitions and spin-offs are key strategies undertaken by pharmaceutical companies to adapt to a rapidly changing environment. M&A allow companies to strengthen their portfolio and pipelines, expand in new therapeutic areas or geographical markets, acquire new technologies and foster innovation, while spin-offs enable companies to separate non-core or underperforming assets to focus their resources on higher-growth areas and improve operational efficiency and focus. Shifts in the pharmaceutical industry have affected M&A activity, with some key trends reshaping the landscape. In fact, factors such as patent expirations, rising costs and pricing pressures, regulatory changes and evolving healthcare needs have led pharmaceutical companies to seek growth through strategic M&A and spin-offs. The thesis explores market and deal trends in the pharmaceutical industry, with a particular focus on the case of Johnson&Johnson. The financial performance of the company is analysed, assessing key ratios and comparing them to its biggest competitors. The aim is to evaluate the impact of transactions in which Johnson&Johnson engaged, such as acquisitions and the recent spin-off, on its performance and on the value created for shareholders.