Local drug companies | 'going out' | Transfoming multinational corporations where the breakthrough?

Pharmaceutical Network November 30 News Local pharmaceutical companies to speed up the pace of internationalization, accelerating the integration of global industrial chains through overseas mergers and acquisitions, strengthening the strength of independent research and development of new drugs in the world, and through diversified cooperation into the global market.Large giants want to become multinational corporations Wind direction at this stage where to go?

Thomson Reuters report shows that cross-border mergers and acquisitions announced in 2016 are mainly concentrated in the three sectors of finance, energy and power, telecommunications, the amount of mergers and acquisitions, the medical sector top10.

Source: Thomson Reuters

Since 2014, the overseas investment transactions of local enterprises in the medical field have enjoyed a rapid growth with a breakthrough in the number of transactions and the transaction amount. The average growth rate of transaction amount over the same period was as high as 400%, reaching 4.253 billion U.S. dollars in the first half of this year About 28.95 billion yuan).

Private enterprises and listed companies are the mainstay of cross-border mergers and acquisitions in the pharmaceutical industry. 'Cross-border mergers and acquisitions of domestic enterprises' have surpassed the 'mergers and acquisitions of local enterprises' in both the quantity and the amount of M & A transactions. "

Looking for growth in overseas markets seems to have become the inevitable choice for the development of local enterprises express delivery.China's pharmaceutical industry is highly competitive and highly competitive.Compared with overseas pharmaceutical companies lower valuation, more cost-effective, through overseas mergers and acquisitions, pharmaceutical companies to find International market entry point, optimize their own product portfolio.

$ 1.091 billion Merger with Indian injection manufacturer Gland Pharma, setting the highest record for overseas M & A by local pharmaceutical companies

After Fosun Pharma completed the merger, Fosun Pharma officials said that the acquisition of Gland Pharma, an Indian pharmaceutical company, is mainly for the purpose of gaining global registration and certification capabilities in order to enter the European and American markets. (Gland Pharma has 17 listed products in the US market , Is India's first injection approved by the United States FDA drug Manufacturing enterprises, and GMP certification has been the world's major regulatory markets, which for Fosun to enter the international market is particularly important).

In addition to strengthening the main business strength, the opportunity to take the opportunity to enter the area is not deep in the past, horizontal expansion is also the overseas investment of local pharmaceutical companies the wind direction at this stage, the more popular medicine Industry standards focused on the overseas chemical drugs, biological medicine, medical instruments And other emerging areas, including translational medicine, medical cosmetology, controlled release preparations, medical testing equipment, O2O surgery, e-commerce, medical mobile marketing, mobile healthcare, medical information systems, etc. have been many Pharmaceutical companies aim on.

Typical buyers, covering medical, medical and beauty, equipment and other large areas of health

Hong Kong listed company Green Leaf Pharmaceutical completed in April 2016 with Australia's third-largest privately owned hospital Group HealtheCare 6,880,000,000 US dollars of delivery, hoping to take this smoothly from the field of pharmaceutical into China's largest international integrated private medical group through this transaction, the Green Leaf Group from the original pharmaceutical segment extends to the medical field.

China has become Asia's largest drug R & D nation and the fourth largest pharmaceutical R & D nation in the world. Innovative pharmaceutical companies represented by Hengrui have set up R & D centers worldwide through the development of 'new global drugs' Clinical trials, overseas construction, foreign registration and other activities, expand overseas markets, from export of raw materials to preparations for export.

The "returnees" team has become the backbone of pharmaceutical companies, including the "Thousand Talents Program", overseas researchers, high-end talents of multinational pharmaceutical companies, technicians who have worked in the FDA and so on.

The domestic R & D institutions boomed due to the favorable R & D policy and the consistency assessment work. China entered the ICH and the MAH system continued to advance. The number and size of domestic R & D institutions were rapidly expanding.

Cross-border cooperation involves all aspects of R & D, production and sales. Diversified cooperation can strengthen the close ties between local enterprises and overseas. Local enterprises realize their own profitability and commercial achievement through the achievement of various stages or the transfer of sales rights and interests.

There are six top ten pharmaceutical companies in the world and six from the United States, but none of them are from China, but in 2017, China has already achieved its first market capitalization of more than 200 billion yuan.With the gradual expansion of the market cap of RMB100 billion, the capital market supplies blood to the real economy, Even if the faded foam coat, the giants of the Chinese giant in the international arena is no longer just appearance.

(As of November 24 closing)

A wide range of international processes have brought in many local enterprises, but the huge gap between overseas and China is a reality that we must face. To truly realize transnationality, there are too many things for local enterprises to do.

This part of the reference point of view Commercial Law monthly