Medical Device Circulators bought industrialists, and the time has come!

Medical Network March 9th The medical device industry has been phased out and the integration has increased. Enterprises are not seeking mergers and acquisitions.

Companies have 'big fish to eat fish', some companies staged a 'snakes like elephants', but also companies love the 'door-to-door' of the new style of marriage.

On February 27, 2018, Dongxing Medical (a wholly-named 'Jiangsu Dongxing Smart Medical Technology Co., Ltd.') of the New Third Board listed company issued an announcement to acquire Wick Medical (RMB) for 395 million yuan (the full name 'Changzhou Wick Medical Devices Co., Ltd.' ) 100% equity.

Dongxing Medical was established in 2001 and its main business is medical device products. proxy Sales, mainly in the East China region, listed new three boards in December 2015.

In 2015, Dongxing Medical achieved revenue of RMB 120 million and net profit of RMB 23.38 million. In 2016, its revenue was RMB 78.76 million and net profit was RMB 10.23 million. In the first half of 2017, it had revenue of RMB 49.50 million and net profit of RMB 8.53 million.

Wick Medical was established in 2009. Its main business is medical instruments The research and development, production and sales, the main products for surgical instruments, such as stapler occupy a certain market position in the industry.

Wacker Medical realized revenue of 45.17 million yuan in 2015, net profit of 4.78 million yuan; 2016 revenue of 64.15 million yuan, net profit of 18.28 million yuan; revenue of 50.59 million yuan in the first half of 2017, net profit of 17.27 million yuan.

Dongxing Medical acquired Wick Healthcare and signed a gambling agreement. Wick Medical's audited after-tax net profit in 2017, 2018, and 2019 must be no less than 26.8 million yuan, 32.16 million yuan, and 38.6 million yuan, respectively. Accumulated net profit after tax for three years is not less than 97.56 million yuan.

East Star Medical and Wick Medical, on the scale of the industry is not small, but also relatively limited.

After the acquisition, the two 'door to door' enterprise , One product and one channel are expected to realize complementary 1+1>2 resources through business restructuring, and their respective performance has been improved. Dongxing Medical has also become a body, revenue, and profits have doubled. Enterprises, even expected to break away from the new board, turn to IPO.

This is a new way of marriage. Small and medium-sized medical and mechanical companies hold together to fight against the strangling of large companies to jointly resist the risk of policy changes and industrial giants.

As a veteran medical device distributor, Dongxing Medical began to want to change its path after 15 years of running the company: from circulation to manufacturer, to upstream industrial chain industrialization.

Dongxing Medical Investment has established a wholly-owned subsidiary, “Dongxing Huamei,” and in 2016, Dongxing Huamei and Taiwan’s machinery company BenQ Mitutoyo Medical jointly invested in “Sanfengdongxing”, and Dongxing Medical indirectly controls 60%; Mitutoyo Dongxing also acquired a 55% stake in 'Sanfeng Original'.

After the above investment, Dongxing Medical entered the production circle and became a medical device manufacturing enterprise with surgical instruments as its main product. Among them, Mitutoyo Dongxing has obtained five medical devices issued by Jiangsu Provincial Food and Drug Administration in 2017. Registration card.

This time, the wholly-owned acquisition of Wick Medical made East Star Medical a major step forward in the transition to manufacturers.

Dongxing Medical and Wick Medical have similar body mass and are both companies in Jiangsu Province. However, from the performance data, Dongxing Medical has suffered from weak growth in revenue in the past three years, and Wake Healthcare is booming.

And Dongxing Medical is a distribution company. Wick Medical is a manufacturing company. Medical distribution medium and small distribution companies are faced with selection, two-vote system, large companies rushing around and so on, all kinds of high pressure, and the survival is often between the frontline; The more you can enjoy the support of various preferential policies.

Medical device distributors are divided into agents and distributors in two major business areas. The strong distributors are often distributors, such as China Resources. Currently known medical device listed companies, their business areas, in addition to manufacturers, the rest is also distributors. , simple agents are rare.

As a distributor, as an agent, in the wave of mergers and acquisitions in the medical and medical industry, it faces both the pressure from M&A from manufacturers and the threat of mergers and acquisitions from large distributors.

Dongxing Medical bought the manufacturer Wick Medical and even called it a counterattack.

Combining strengths with mergers and acquisitions is the path to the transformation and upgrading of visionary medical device companies. Can physician agents open up new worlds through M&A manufacturers? Dongxing Medical or will provide a reference model for the industry.

in medicine Circle, there are also many cases of agents taking shares in pharmaceutical companies. For example, in early 2016, Hubei New Direction Pharmaceutical Co., Ltd. took over and custodian the listed Hubei Qianjiang Pharmaceutical. By October of that year, Qianjiang Pharmaceutical's 10-year loss ended abruptly.

According to reports, after the new direction of hosting, the first thing to do is to work hard to rectify the sales system. The new direction has a sound Merchants Network, powerful business resources, professional commitment to the promotion of new drugs, specialty drugs. Such commercial companies have relatively professional sales representatives, and also have relatively professional full-time promotion representatives. Their professional promotion team has largely made up for the current situation. Most of the small and medium-sized pharmaceutical companies today are not able to establish the defects of a professional promotion team. As a result, Qianjiang Pharmaceuticals quickly loses its profits.