The present study aims at analyzing the impact of long term post acquisition financial performance of pharmaceuticals Industry of India. Companies belonging to any Industry can fulfill the desire for growth in two major ways, one is organic and the other is inorganic way to achieve growth. Organic or internal growth is achieved in the natural course of time by the way of expanding product portfolio or setting up new production unit. The firm that has limited opportunities to grow internally, merger and acquisition provides an external way to achieve growth. Due to the forces like globalization, technological advancement, cut thought competition etc. corporate restructuring has gained significant importance as a means to gain external growth in the whole world. In this context the primary objective of this paper have been set to analyze the post acquisition financial performance of major pharmaceutical companies which undergone merger and acquisition activity during the window period between 2005 to 2008 are considered for this study. The whole study period is being divided into two period, pre merger and post merger period. The pre acquisition period is comprised of 5 years and as we have intended to study long term financial performance of merged company which is also the main focus of our study, we have taken a long post merger period of 10 years. In both the cases the year of merger has been excluded from both pre and post merger period. Four major parameters to determine financial health namely Liquidity test, Profitability test, Capital structure or Solvency test and Efficiency in asset management test have been carried out in this study. The financial data of the sample companies secondary in nature which have been collected from various sources namely, moneycontrol.com, and BSE and NSE websites and from websites. Current ratio and Quick for determining liquidity, Return on Capital Employed (ROCE), Return on Total Asset and Earnings per Share are being used for determining profitability position. Efficiency on Asset Management has been measured with the help of Fixed Asset Turnover Ratio and Debt Equity Ratio. The significance of these ratios has been tested with the help of t-test by using SPSS software. Overall findings of the whole study revealed statistically significant improved long term post acquisition financial performance for most of the companies of pharmaceuticals sector in India.

KEYWORDS: Financial Performance, Merger and Acquisition, Globalization, Shareholder Wealth, ROCE.