Merger & Acquisition (M&A) is an important facet of corporate strategy. It plays a pivotal role in the development of any nation. On the other hand, the growth of the Pharmaceutical Industry and their contribution to Indian economy can never be overemphasized. In this paper an attempt has been made to analyze the impact of acquisition on the Pharmaceutical Industry based on selected companies (Ranbaxy Laboratories Ltd. and Sun Pharmaceutical Industries). For this study, various profitability ratios, different descriptive statistics and time series analysis has been used to make a comparative analysis on the profitability, operating performance in the pre and post-acquisition period. This study also helps to analyze the synergic growth achieved by the acquiring firms in the post-acquisition period. This research showed that there is no significant impact on profitability (as per T-Test) and over the time, the growth assumed by the acquisition is profitable for Sun Pharmaceutical Industries Ltd. in some aspects (as per time series analysis), i.e. competitive advantage has been gained by the Sun Pharmaceutical Industries Ltd. through acquisition. However, it has been found that for Ranbaxy Laboratories Ltd., there is no significant impact on profitability (as per T-Test) and over the time growth assumed by the acquisition is not profitable at all for Ranbaxy Laboratories Ltd. (as per time series analysis) i.e. competitive advantage has not been gained through Acquisition. Moreover, the performance was much better during the pre-acquisition period.