A batch of pharmaceutical companies declared bankruptcy

Competition is becoming increasingly fierce.

01 Bankruptcy and reorganization of well-known time-honored brands

Recently, Guizhou Sanli Pharmaceutical issued the "Announcement on the Public Recruitment of Investors to Participate in the Bankruptcy and Reorganization of Guiyang Dechangxiang Pharmaceutical Co.

Guizhou Sanli Pharmaceutical plans to pay a deposit of RMB 50 million to participate in the public recruitment of investors for the bankruptcy and reorganization of Guiyang Dechangxiang Pharmaceutical

Before Dechangxiang Pharmaceutical filed for bankruptcy and reorganization, it had been sold and terminated twice due to business problems

On July 17, 2020, Guizhou Sanli Pharmaceutical issued an announcement stating that it intends to increase capital in Hanfang Pharmaceutical and Dechangxiang Pharmaceutical through cash, and it intends to pay a deposit of RMB 100 million to the asset controller, obtaining no more than 51% Equity

It is worth mentioning that only three months later, Guizhou Sanli Pharmaceutical announced the termination of the capital increase plan due to the unsatisfactory business conditions of Dechangxiang Pharmaceutical

Jiaying Pharmaceutical has also invested in its proposed acquisition of Dechangxiang

Jiaying Pharmaceutical announced that it intends to purchase 99.

Although the reform of the pharmaceutical market poses certain challenges for Dechangxiang, for this bankruptcy, Guizhou Sanli Pharmaceutical believes that the "Dechangxiang" brand is a century-old brand with greater influence.

Based on the strategic development perspective of expanding product categories, solving the relatively concentrated risks of its products, enhancing its industry competitiveness, and promoting its long-term and healthy development, the listed company participated in the public recruitment of Dechangxiang bankruptcy and reorganization investors, and developed its market competition.

02Morethan pharmaceutical companies declared bankruptcy

The new year is approaching, and many pharmaceutical companies have declared bankruptcy this year

On November 24, Paisi Shuanglin Biopharmaceutical issued an announcement on the termination of the bankruptcy proceedings of Hunan Weikang Pharmaceutical.

On September 28, Yunnan Biopharmaceutical, a subsidiary of Hisun Pharmaceutical, submitted an application for bankruptcy and reorganization to the People's Court

On August 14, Baike Biopharmaceuticals issued an announcement stating that it had received a notice from Changchun High-tech, the controlling shareholder of Changchun Baiyi Pharmaceutical, a joint-stock company, that Baiyi Pharmaceutical has terminated its research and development project exenatide (exenatide), in order to protect the interests of shareholders.

At the 39th China Pharmaceutical Industry Development Summit Forum hosted by Cyberlan, Wang Xuegong, Executive Vice President of China Pharmaceutical Enterprise Management Association, said that according to industry statistics, 16.

Industry professionals believe that the announcement of bankruptcy by pharmaceutical companies is due to a variety of comprehensive reasons, including market positioning, funding, and external factors.

03 How to respond?

In the face of fierce market competition, many pharmaceutical companies have already made reforms to seek breakthroughs.
At present, there is more and more entering into new fields or strategic cooperation between companies
.

Taking Hengrui as an example, from Yingli, Wanchun, Tianguangshi to the recent cooperation with Cornerstone, the continuous improvement of its own products has also driven the domestic BD boom
.

Essence Securities analyzed in a research report that cooperative development can be combined with the company's current independent research and development products to further enhance the richness of its product pipeline, and related products are expected to achieve rapid volume increase through its dominant commercialization capabilities after listing
.

There are also many pharmaceutical companies that develop across borders.
According to statistics, there are currently more than 300 pharmaceutical companies in China that have cross-border layouts for cosmetics business
.
Pien Tze Huang's whitening cosmeceuticals, Ma Yinglong and 999 dermatitis sell lipsticks, and Tongrentang, Kang Enbei, etc.
have been deployed in the medical beauty industry
.

Zhao Heng, founder of Latitude Health, a medical strategy consulting company, told Cyberland in an interview that medical reform has a huge impact on pharmaceutical companies.
In this context, pharmaceutical companies need to seek other areas of development
.
The crossover of pharmaceutical companies is to seek synergy with their own businesses to feed back their main businesses; on the other hand, to promote other business revenues, the growth rate of the main business of the links may slow down
.

The tide of medical reform is still advancing.
Under this background, the core competitiveness and product differentiation capabilities of pharmaceutical companies are particularly important for better development
.
For medical professionals, only by continuously strengthening their professional capabilities can they develop steadily
.