In seven years, 222 mergers and acquisitions, the amount involved 47.5 billion

Pharmaceutical Network January 12 hearing mergers and acquisitions in the pharmaceutical circle in recent years increasingly hot, the concentration of China's pharmaceutical industry also will continue to rise.Especially some large pharmaceutical groups cross-border mergers and acquisitions, often tens of billions or even 10 million is not uncommon , But there are few systematic reviews on the same caliber of mergers and acquisitions by domestic enterprises. This paper attempts to sort out the circle mergers and acquisitions in China in recent years.

China's medical treatment health care With the increasingly stringent and standardized industry regulatory regimes and policies, a continual high-pressure policy environment and an increasingly competitive environment, pharmaceutical companies are under increasing pressure of growth.

In this context, large enterprises looking for quality resources to carry out mergers and acquisitions in order to thrive on performance has become an inevitable strategic choice for Chinese pharmaceutical companies; and some small businesses are also under pressure from policy to find a good shade for a big tree. Based on this background China's medical treatment health care Industry mergers and acquisitions more and more popular.

According to Zero2IPO Group investment community data, the author statistics 222 cases of mergers and acquisitions from 2011 to December 31, 2017. From the distribution of the year, the number of mergers and acquisitions after 2013 increased significantly, a new high in 2017, medicine Circle mergers and acquisitions up to 56.

(According to the Zero2IPO Investment Group data consolidation, does not guarantee the integrity and accuracy of the data, for readers reference)

In terms of the amount of mergers and acquisitions, the amount of mergers and acquisitions that have been made public involves an amount of nearly 50 billion yuan, and the amount of mergers and acquisitions involved in 2015-2017 is also significantly increased.

(According to the Zero2IPO Investment Group data consolidation, does not guarantee the integrity and accuracy of the data, for readers reference)

According to the top 100 list of China's pharmaceutical industry in 2016, the data disclosed by relevant experts made it clear that the top 100 enterprises have become the main force in pharmaceutical manufacturing.

The current size of the enterprise (annual sales of more than 20 million yuan in the enterprise) polarization more apparent.

China's pharmaceutical industry manufacturing enterprises have about 5500, the number of less than 2% of the large-scale enterprises, creating nearly a quarter of the industry sales (26.9%) and profits (24.85%), while the number of 82% Of the pharmaceutical companies, sales of less than 500 million yuan in its sales accounted for only a quarter of the proportion of the pharmaceutical industry.

China's top 100 enterprises gradually increase the entry threshold, the top 100 companies finalists threshold from 932 million yuan in 2013 rose to the current 1.46 billion yuan, which is constantly mergers and acquisitions and expansion of enterprises are inseparable, as mentioned above There are 82 strong listed companies in the list, but the number of affiliated subsidiaries actually included in the scope of consolidation was 1322, with an average of more than 16 subsidiaries under each company. This shows that M & A consolidation among enterprises is strong.

In 2017, there are a lot of big news about the medical circle mergers and acquisitions. For example, Kantor will transfer its distribution business in China. Fosun Pharma acquired India's Gland Pharma and Human Fuk Pharma to acquire Ansel Sexuality health Business, Sin Chan Pharmaceutical more than 837 million acquisition of two Italian pharmaceutical companies NewchemS.P.A. and EffechemS.r.l.100% of the shares, etc., the major media have more reports, this article is not undeserved.

The author below the less reported two cases of domestic summary analysis to readers.

Nearly 500 million Benda Pharmaceuticals acquired Kananji Pharma.

On June 19, 2017, Beida Pharmaceutical issued a public notice announcing its open-market acquisition of 13.5% and 9.09% equity interests in Kanang Ji held by the two companies respectively with a total capital of 108.43 million yuan as early as February 2017. Beida That is 372.1 million yuan (tax included) in the form of cash in the transfer of existing shareholders of Kanan Ji 77.41% stake.

At this point, Beida Pharmaceutical 100% stake in Kanamichi, a total investment of nearly 500000000 yuan.Kananji medicine is a founding anti- Tumor Pharmaceutical drug research and development companies, and Beida Pharmaceutical has a strong synergistic relationship.

286 million acquisition of China Medical Kang Li pharmaceutical.

China Pharmaceutical announced on June 7 that it plans to invest a total of RMB286.2 million with its own funds to acquire a 54% stake in Hainan General Purpose Kangli Pharmaceutical Co., Ltd. Upon completion of the transaction, Kangli will be included in the scope of the consolidated statements of China Medical.

Public information shows that the main varieties of Hainan Kangli Piperacillin sulbactam, alanyl glutamine; production in the sales of more than 50 product specifications to freeze-dried powder, sterile powder-based, Covering antibiotics, nutritional drugs, cardiovascular and other major areas of medication.

According to the author, people in the industry have learned that there has been a new trend in the pharmaceutical industry and the cross-border mergers and acquisitions have increased. In particular, some real estate companies cross-border mergers and acquisitions to bring new growth to the enterprises in the real estate industry point.

There are two cross-border mergers and acquisitions open only through the investment community: Xinhe Industrial Co., Ltd. merged with Da Cheng Medical Co., Ltd. and San San Co. merged Chunrui Pharmaceutical Co. In fact, there are many similar cross-border non-public mergers and acquisitions pharmaceutical companies.

No wonder, China's commercial real estate leader Wanda also announced in high profile in 2017 that it will invest more than 100 billion in the development of medical services.

Tightening policies, large and small pharmaceutical companies have their own pressure and difficulties

China's medical regulatory policies are increasingly strict, medical insurance control costs, 'drug ratio' restrictions, generic drug quality and efficacy of the same assessment, 'two votes system', according to the implementation of pilot payment of the disease will speed up the industry reshuffle, the small drug Enterprises survive increasingly difficult, of which there are some just started some good potential varieties, however, some of these enterprises are often the most likely to be the subject of mergers and acquisitions.

On the other hand, some larger pharmaceutical companies also face the bottleneck of growth after a certain period of growth. Their cash flow is abundant. However, it is obviously difficult to achieve leapfrog development by keeping their own "one-thirds of a acre" The urgent need through the acquisition can be expanded product lines, access to quality channels, expand their scale of operation, enhance the competitiveness of the industry, quickly entered a new market.

New varieties and business transformation needs

The urgent need of large enterprises for high quality varieties.

With the state's norms on drug agency behavior, China medicine The era of industry marketing has been gradually gone, enterprise Marketing strategy is becoming more and more homogeneous, and the advantages of the product has become the key to differentiated competition.For the new profit growth point and the maintenance of the stability of the marketing team require companies need to quickly enrich the original product line, in particular, need to add quality varieties. Become the preferred measure of these pharmaceutical companies, and the risk is relatively small.

Business transformation needs of the new business platform.

Current China medicine The scale of the pharmaceutical industry in the pharmaceutical industry, a considerable part of the generic drugs, generic chemical drugs and other barriers to the type of business is not high.And some new R & D-based pharmaceutical companies hold one or several good varieties, often become the size enterprise 觊 觎 the first choice of the subject of mergers and acquisitions.Pharmaceutical companies through mergers and acquisitions, capital operation to achieve access to resources, through mergers and acquisitions to reduce the risk of enterprise restructuring, resulting in excess returns for the enterprise.

January-December 2017 China's pharmaceutical industry's main mergers and acquisitions incomplete statistics are as follows: