Sinopharm's Medical Machinery Business Consolidation | Impact A Shares

Medical Network April 2 hearing In 2018, the medical device industry is really surging, after a wave of waves.

According to the exclusive news on April 1, the interface news, Sinopharm's full name of 'China Medical Devices Co., Ltd.' and China National Pharmaceutical Holdings (wholly known as 'Sinopharm Holding Co., Ltd.') are merging their medical device businesses, and will use Sinopharm devices as the mainstay. Seeking a separate listing, the impact of A shares.

According to informed sources, after the Spring Festival of 2018, Sinopharm Instruments and the subsidiary equipment business of Sinopharm began to seek a merger. At present, the two sides are carrying out organizational restructuring and the specific plan has not yet become clear.

Sinopharm has just moved its headquarters from Beijing to Wuhan Optics Valley, and the chairman, Yu Qingming, publicly stated that from this year onwards, the company will have to invade into the production area from the circulation field, carry out OEM production, and manufacture original brands.

Coupled with this latest news, the Chinese medicine equipment is the rhythm of 'doing big things' in the medical device industry.

Further, this is the China National Pharmaceutical Group (full name 'China medicine Group Co., Ltd.'s medical instruments Industry 'doing big things'.

The large state-owned enterprises directly under the State-owned Assets Supervision and Administration Commission of the State Council, with a revenue of RMB350 billion in 2017, ranks 199th in the 2017 Global 500 list, and is currently the largest pharmaceutical company in China. enterprise Group company, its revenue and scale exceeds the sum of the second and third China Resources and Shanghai Medicine.

Sinopharm Group now has 720 subsidiaries and 6 listed companies.

Sinopharm is one of the subsidiaries and is the main force behind the development of the medical device business under the China National Pharmaceutical Group. Its operating revenue in 2017 was 30.7 billion yuan, and its target in 2018 was 50 billion. The previous business of Sinopharm was only in the field of medical device circulation. , is now expanding into the field of production.

Sinopharm Co., Ltd. is one of the six listed companies and was listed in Hong Kong in 2009. The principal core business of Sinopharm is drug distribution and retail, and it has always been the industry leader. Sinopharm also has certain medical device distribution, financial leasing , The manufacture and sale of chemical reagents and lab supplies. It owns the subsidiaries of Sinopharm Medicine Medical Devices Co., Ltd. and Sinopharm Group Chemical Reagent Co., Ltd.

On March 26th, Sinopharm announced its performance in 2017. The company achieved revenue of 277.717 billion yuan last year, an increase of 7.48% year-on-year, and a net profit of 7.868 billion yuan, a year-on-year increase of 14.17%. Sinopharm continues to maintain its position in the pharmaceutical industry. The position of circulation boss.

Among which, the pharmaceutical distribution segment reported revenue of 264.35 billion yuan, an increase of 7.26%, accounting for 94.17% of total revenue; retail sales of 12.39 billion yuan, and other businesses (finance lease, manufacture of chemical reagents and laboratory supplies, and sales). Revenue 39.6. 100 million yuan.

In the revenue of Sinopharm Holdings, the specific proportion of the medical device segment is not yet known. However, it is known that Sinopharm Group has vigorously developed its medical device distribution business in 2017, with its sales growth exceeding 30%, which exceeds the growth rate. The total growth rate of Sinopharm's pharmaceutical distribution revenue and the gross profit rate of medical device distribution business are also higher than that of drug distribution. The company develops washing, disinfecting, after-sales maintenance, etc. on the basis of drug-arms linkage. hospital Medical services, the scale has also been growing rapidly.

In the same industry as the Sinopharm Group, Sinopharm is transforming itself from a traditional medical device distributor to an integrated service provider, and it must be counter-attacked into the production sector from the circulation field.

One of the transitional actions: On March 28th, Sinopharm Instrument Shandong Co., Ltd. and Qingdao High-tech Zone signed a strategic cooperation framework agreement, and will build a Sino-pharmaceutical equipment East China R&D industrial base project in the High-tech Zone. The project will have a total investment of about 400 million yuan, which will be introduced in a centralized manner. There are more than 10 medical equipment R&D, production and medical management enterprise projects such as imaging equipment, monitoring equipment, in vitro diagnostic reagents, and so on. The annual output value is more than 500 million yuan, and the annual tax payment is 25 million yuan.

In the past few years, Sinopharm has also undergone a business transformation, from the traditional circulation enterprises to the new pharmaceutical service companies, and has launched new services such as hospital medical services.

Sinopharm has previously disclosed data that the company’s sales in recent years have experienced CAGR of more than 57%. Sinopharm's medical device distribution business, as mentioned above, has increased by 30%. Both companies are in the field of medical devices. Business growth is relatively fast.

In addition, whether it is Sinopharm devices or Sinopharm, it can be seen from the public information that they are already riding the Dongfeng, which is a two-vote system. The staking area in some places can always see the two companies and their subsidiaries. The figure. Both companies also participate in the pilot of third-party medical device logistics companies.

At present, it is unclear how Sinopharm's medical device business will be integrated into Sinopharmaceutical Devices. However, this merger is indeed a major event in the industry.

After the merger, the emergence of the industry’s first large-scale medical equipment distribution company with a turnover of more than 100 billion yuan will not really be a dream.

The field of medical device circulation may also be changed in the past and scattered. drug There is a high degree of concentration in the circulation field and there is no such thing as the leading medical device circulation giant.

The gap between medical device distribution companies will increase and the competition will become more and more intense.

In the new era of industry giant earthquakes, this is just the beginning!