Antitrust investigation terminates Hainan Haipharma's $2.1 billion acquisition of Qili Pharmaceuticals

Anti-monopoly investigation terminated, today resumed trading, Hainan Hai Pharmaceuticals acquisition of Qili Pharmaceuticals has made new progress
Yesterday, Hainan Hai Pharmaceutical Co., Ltd. (hereinafter referred to as "Hainan Hai Pharmaceuticals") issued a major asset purchase plan (revised draft), the company intends to pay cash to buy 100% of Qili Pharmaceutical shares, after negotiations between the parties to the transaction, Qili Pharmaceutical 100% share transaction price tentatively set at 2.142 billion yuan.
same time, Hainan Haipharma issued an announcement and received a notice from the Antimonopoly Bureau of the State Administration of Market Supervision and Administration that no further review would be conducted on the case of Hainan Hai Pharmaceutical Co., Ltd.'s acquisition of the equity interest in Haikou Qili Pharmaceutical Co., Ltd.
means that the drug has taken off its monopoly suspicion and can begin to move forward with the acquisition.expand its main business, absorb research and development departments
Hainan Hai pharmaceutical business layout products research and development manufacturing, biomedicine, medical equipment, Internet medical and medical services several major sectors, currently to drug and medical devices research and development, production and sales. According to hainan hai medicine official website information, the sea medicine product line structure is reasonable, rich dosage form, at the same time, its sales network all over the country, leading to the world, the country's major provinces have sales staff.
Qili Pharmaceutical's main business for drug research and development, production and sales, for Hainan Province, well-known pharmaceutical production enterprises, with a number of market competitiveness of the core products, including compound antibiotic preparation injection cephalosporine sodium tamantan sodium. According to the official website information, Qili Pharmaceuticals currently has 14 GMP production lines, the production of 181 pharmaceutical regulations, including a number of brand products (including a class of 2 new drugs, three new drugs), forming a relatively good product structure.
According to its announcement information, after the completion of this transaction, the two sides can achieve the following objectives:
1, expand the main business scale and profitability, enrich product categories;
2, in drug research and development, Hainan Haipharma absorbs Qili Pharmaceutical's research and development department, integrates it into the three-level research and development system of pharmaceutical chemicals, biomedicine devices and biopharmaceuticals, and realizes the complementary advantages of the research and development platform, saving research and development costs and improving research and development capabilities.
3, in the procurement and production, hai medicine as a leading specialty antibiotic production enterprises, with from intermediates to raw materials to chemical agents of the entire industrial chain production technology and capacity. Hainan Haipharma and Qili Pharmaceuticals can reduce costs through centralized procurement, but also Qili Pharmaceuticals into the entire industrial chain of Hainan Hai Pharmaceuticals, by Hainan Hai Pharmaceuticals to provide them with related raw materials, significantly reduce The purchase price of Qili Pharmaceuticals. To play the synergy between the two sides in the supply of raw materials, effectively reduce procurement and production costs.
4, in terms of sales channels, both end-customers are mainly domestic hospitals, after the completion of this merger, Haipharma will be the two sides of the market resources integration, sharing and optimization of market channels and customer resources, Qili Pharmaceutical's high-quality core products grafted in the advantages of the sea medicine marketing network, expand the overall sales scale, reduce sales costs.
that the transaction is conducive to Hainan Hai pharmaceutical to promote the creation of large-scale research and development, large-scale production, large-scale sales platform of the established strategy, and strive for favorable government policy support.acquisition is risky and still needs to be cautious
According to the announcement, Hainan Haipharma will fully integrate Qili Pharmaceuticals after the transaction is completed.
in terms of strategic planning, Hainan Hai pharmaceutical will unify the development strategy of various holding subsidiaries, including Qili Pharmaceutical, including not limited to business development planning, major pharmaceutical research and development direction, employee incentives and other important human resources systems, through research and development, production, brand, channels, systems, standards and other aspects of integration, to play the synergies between the two sides.long-term action, the acquisition has long foreshadowed
from the action of the sea medicine in recent years, perhaps can see its acquisition planning.
June 17, 2018, Haipharma sold a stake in China Antibody Pharmaceutical Co., Ltd. for a total price of RMB100 million.
In January 2018, Haipharma Subsidiary Hai pharmaceutical investment and Shanghai Yukadi Biopharmaceutical Technology Co., Ltd. signed a strategic cooperation framework agreement, the two sides around the field of biomedicine and cell therapy cooperation, jointly set up Hainan Haiyou cell immunotherapy research Co., Ltd.
July 20, 2017, Haipharma transferred its 24.998 percent stake in Hainan Cylemin Biotech Co., Ltd. to Shenzhen Cylemin for RMB60 million.
On December 28, 2016, Haipant sold its 30% stake in Zhongxian Tongzheng Microfinance Co., Ltd. of Chongqing Zhongxian, which was priced on the basis of the audited net assets of Zhongxian Micro Loans of 123 million yuan, and jointly negotiated the transfer price.
from the action of Shanghai South China Sea Medicine, hai medicine in recent years in the transfer of marginal assets, raising funds, while focusing on the field of biomedicine, plus code new drug research and development, thereby expanding and extending the company's industry.
year, Haipharma bought Qili Pharmaceuticals for 2.1 billion yuan, perhaps because of its new drug research and development and the advantages of a wealth of new drug varieties.
And from a more macro point of view, both sides of the transaction are hainan's leading local enterprises, especially in Hainan Province on the introduction of the "Hainan Province on the healthy development of the pharmaceutical industry" and other related policies in the background, on the one hand reflects the national and local industrial policy support, Hainan Province pharmaceutical enterprises ushered in a good opportunity for development; (Seber Blue)