from prior know-how (Powell 1993), so that it is not enough for an acquirer to simply “buy” a technology, because, to create value, this technology must be nur- tured and integrated throughout the postacquisition integration process (Larsson and Finkelstein 1999). However, considering the big differences in culture and organizational styles between pharmaceutical and biotechnology companies, the challenge of gaining access to the desired capabilities becomes even more obvious and highlights the importance of the “absorptive capabilities” (Cohen and Levinthal 1990) as well as the importance of keeping the top R&D people of the acquired biotechnology company. Thus, future research of M&A activities between pharmaceutical and biotechnology companies might focus on the following questions:
• How can a pharmaceutical company evaluate a patent or technology during the due diligence phase when it is lacking an in-depth understanding of the new area?
• How is it possible for a pharmaceutical company to retain the top R&D people or teams of the acquired biotechnology company?
• Do pharmaceutical companies profit from experience of previous biotechnology acquisitions?
• How can a pharmaceutical company keep up the innovative and research culture of the acquired biotechnology firm in the long run?
• What is the importance of speed in the postacquisition integration process?
• How can pharmaceutical companies measure the long-term success of biotechnology acquisition?
In these sections, we have identified key questions that may provide some guidance for future research concerning M&A activities in the biotechnology and pharmaceutical sectors. We encourage researchers to keep these questions in mind as they pursue future studies.
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Brewery’s Entry into Biopharmaceuticals
Michael J. Lynskey
Institute of Innovation Research, Hitotsubashi University, 2-1 Naka, Kunitachi, Tokyo 186-8603, Japan