Mergers and Acquisitions as a Consequence of Declining Innovation Productivity in Pharmaceuticals: Evidence from Croatia

  • Assist. Prof. Dr. Davor Mance University of Rijeka, Faculty of Economics, Ivana Filipovića 4, Rijeka, Croatia
  • Assoc. Prof. Dr. Nenad Vretenar University of Rijeka, Faculty of Economics, Ivana Filipovića 4, Rijeka, Croatia
  • Antonija Gudelj Jadranski galenski laboratorij d.d., Svilno 20, Rijeka, Croatia
Keywords: mergers and acquisitions, pharmaceutical industry, research and development


Declining productivity of pharmaceutical innovation resulted in an increased number of mergers & acquisitions in the pharmaceutical industry. Increased investments into research & development lack the resulting increases in patentable new substances. As a result, the once market leaders are not buying their followers, but the generics producers are buying unsuccessful innovators. We show the case of Pliva: once regional pharma leader that declined into a generics producer's subsidiary. The Pliva sought new ideas by acquiring several research centres. After these acquisitions produced no visible results, the company itself was a target, first by another unsuccessful R&D based company and lastly, by a successful generics producer.


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How to Cite
Mance, D., Vretenar, N. and Gudelj, A. (2020) “Mergers and Acquisitions as a Consequence of Declining Innovation Productivity in Pharmaceuticals: Evidence from Croatia”, Mednarodno inovativno poslovanje = Journal of Innovative Business and Management, 12(1), pp. 1-8. doi: 10.32015/JIBM/2020-12-1-1.
Original article