Jack Ma's fund and then shot: hand in minimally invasive, 1.2 billion to buy equipment

Pharmaceutical Network February 23 hearing Ma greatly cloud front fund for the medical device industry shot again, this time targeting the pacemaker and defibrillators and other fields.

On November 20 last year, the H-share listed company Minimally Invasive Medical ("Micro-invasive Medical Science Co., Ltd.") announced that it will acquire LivaNova ) Of the heart rhythm management business (CRM business).

February 20, 2018, Minimally Invasive Medical Reissue Announcement, the Company and its wholly-owned subsidiary have entered into a capital contribution and shareholder agreement with SRL and will jointly finance the acquisition of the above CRM business. Following the completion of the transaction, Micro-invasive and SRL The shareholding ratio is 75% and 25% respectively.

However, the Contribution and Shareholders Agreement also stipulates that if the initial public offering or trade sale of the CRM Business does not occur on or before the fifth anniversary of its completion, SRL is entitled to claim the minimal purchase of any or all of the Shares held by SRL.

After a lapse of 3 months, minimally invasive Sorin CRM business acquisition of a more strategic partner - SRI.

Minimally Invasive Medical Announcement Presentation, SRL is an investment company incorporated in the British Virgin Islands and is wholly-owned by Yunfeng Fund III, L.P. (Yun Feng Fund).

Founded in early 2010, Yunfeng Fund is named after Jack Ma, chairman of Alibaba's board of directors and Yu Feng, founder of Crowdfunding Media, in conjunction with a group of industry leaders, successful entrepreneurs and successes Entrepreneurship Co-sponsored the creation of private equity funds.

Yunfeng Fund mainly involved in the Internet, medical health care , Big entertainment, finance, logistics and consumer and other fields. medical instruments Yunfeng Fund is currently focused on one of the segments.

Yunfeng Fund deep involvement of medical equipment circle, as of now, not minimally invasive medical, with the Yunfeng Fund has been associated:

Shenzhen Mindray Medical, its founder, former chairman Xu Hang is one of the sponsors Yunfeng Fund;

Huada gene, before the market had access to cloud front fund investment support;

Huada Technology, a subsidiary of Huada Gene, Yunfeng Fund to participate in its Series B financing;

Wandong Medical, diving After buying Wandong from the North Pharmaceutical Group under China Resources, Yunfeng Fund has participated in Wadong's fixed-capital investment of 200 million to subscribe 2.35% of the shares;

Italy Yum! Medical Group, by the end of 2017, Yunfeng Fund led the joint diving, Wan East, the United States and the United States health , Hong Tat, Shanghai Free Trade Zone Fund, to 1.9 billion yuan to buy Yum;

Ruilai Bio, POCT detector and testing reagent manufacturer, Yunfeng Fund and 100 million yuan participated in its round A financing;

Genuo biological, liquid biopsy products supplier, Yunfeng Fund involved in the investment, but the details were not disclosed.

Details Yunfeng Fund previously invested in the medical device industry, focused on the medical imaging equipment and IVD field. Yunfeng Fund and minimalist work together to buy Sorin CRM business, can be said to have opened a new chapter, Yunfeng Funds hit the field of high value supplies, Yun Feng Department of medical equipment enterprise And one more!

For minimally invasive, to buy Sorin's CRM business, the plot is not small.

Sorin's CRM business, which includes key products such as pacemakers, defibrillators and cardiac resynchronization therapy devices, posted net sales of approximately $ 249 million in 2016. In the China market, Sorin's share is not as good as that of Medtronic , Abbott, more than one hundred power, Poco, but also ranked fifth.

As early as 2014, minimally invasive and Sorin set up a joint venture company in China to lead the development of cardiology; in 2015, the domestic pacemaker production line that created the cardiology service was completed. In 2017, the company created the Rega Heart series Implantable cardiac pacemaker to get CFDA approval.

However, Minimalist also announced that the CRM product planned with the joint venture with Sorin was still in development stage, which required more tests and clinical trials, which made it difficult to determine the time-to-market for the products and the JV was still in its infancy, No profits yet, and a net loss in the coming year.

This time, minimally invasive Sorin further to buy the CRM business, the company expected to get a lot of benefits:

Micro-invasive will become China's most advanced one with CRM expertise, into the scale of about 100 billion US dollars in the global CRM market, with Medtronic, Abbott, Poco and other high;

The acquisition will further strengthen the leading position of minimally invasive cardiovascular intervention device market in China and the minimally invasive cardiovascular intervention product portfolio will also be enriched.

Minimally invasive can speed up the development of its new CRM products, and independent research and development of CRM products and imported CRM products will accelerate the company's CRM products in the Chinese market, pace of sales and make up for the net loss;

Sorin CRM operations mainly in Europe, the acquisition will help to promote minimally invasive orthopedic, cardiovascular intervention and other products in the European market distribution.

It looks like this will be a very good deal for M & A!

Among the medical equipment enterprises in China, there are three major characteristics of minimally invasive surgery. One is returnees to start-ups, and the largest shareholder currently is Otsuka, which is from Japan. The other is to focus on R & D and R & D investment, which accounts for 10% of annual revenue. Globalization, minimally invasive mergers and acquisitions prefer to find overseas companies.

Micro-invasive bought the Ortho Recon orthopedic business from Wright Medical Company in the United States and Johnson & Johnson's Conor Medsystems Inc. to acquire coronary stent products and technologies.

The direct effect of cross-border mergers and acquisitions is the rapid development of minimally invasive orthopedic and cardiovascular interventional devices business, but in conclusion, the overseas market revenue brought by cross-border M & A is more than the mainland China market.

At present, the proportion of minimally invasive overseas business revenue has exceeded 50% of total revenue, for example, the main sales of minimally invasive orthopedic consumables are in overseas markets, not in mainland China.

This time cross-border mergers and acquisitions Italian Sorin Group's CRM business, minimally invasive globalization went further, the overseas market revenue and accounting for or will be further enhanced.

In China's CRM market, in addition to the global giants Medtronic, Abbott, Poco, more than one hundred power, the rise of the country also has acquired the Qin Pu medical music, Lep developed implantable double-chamber cardiac pacing QM8631 has been approved by the CFDA in 2016 and is the only domestic dual-chamber pacemaker that is currently on the market.

In addition, Medtronic shares of Shenzhen First Healthcare Technology, First Health into the Medtronic production line, has been launched in 2017 TongTong HeartTone TM single and double chamber pacemaker, and active and passive pacemaker electrode leads, become the country has reached the international advanced Horizontal implantable cardiac pacemaker system complete product line manufacturers.

Before the wolf, after the tiger, minimally invasive after this acquisition can integrate effective, both against the global giants, but also against domestic rivals, quickly expand in the country to open the CRM business, but also faster and better to catch the express instead of imports of domestic production , It is still impossible to conclude.

Yunfeng Fund's involvement, will be minimally invasive, to the Chinese CRM market, what is also hard to say.

However, China's CRM market, the great changes coming, is inevitable!