Biomedical M&A will be active in 2022, and local pharmaceutical companies will increase their mergers and acquisitions of overseas companies!

【Pharmaceutical Network Industry News】In recent years, mergers and acquisitions in the field of biomedicine have been active
.
In 2021, there were 308 mergers and acquisitions in the domestic biomedical industry, with a total amount of 251.
625 billion yuan
.
In 2022, mergers and acquisitions in the biomedical field are still frequent, as of August 9, 175 mergers and acquisitions have occurred in China, with a total amount of 48.
6 billion yuan
.
In addition, the mergers and acquisitions of overseas pharmaceutical companies by local pharmaceutical companies are also increasing
this year.
For example, in October, Kyushu Pharmaceutical announced that it had decided to change the 185 million yuan raised in the fundraising and investment project to acquire 100% of Sandoz Zhongshan Pharmaceutical Factory and increase its capital
.
After the completion of the acquisition, the remaining funds will increase the capital of Sandoz Zhongshan Pharmaceutical Factory for the implementation of the Sandoz Zhongshan Pharmaceutical Factory CDMO (Pharmaceutical Commercial Manufacturing Outsourcing) formulation transformation and expansion project
.
In addition, the original Siwei Pharmaceutical CDMO preparation project will no longer be implemented
.
On June 6, Fosun Pharma announced that Fosun PharmaPte.
, a holding subsidiary of the company, intends to invest no more than S$217 million to acquire a total of 60% of the shares
of OncoCare held by SolidSuccess, SMS and 3 holding doctors.
It is reported that OncoCare is currently a large-scale private oncology specialist medical center
with a large number of local oncologists in Singapore.
At the end of January this year, Qiming Medical announced the completion of the acquisition
of 100% of the shares of Cardiovalve, an innovative transcatheter mitral valve therapy company.
According to the data, Cardiovalve was founded in 2010, headquartered in Israel, the company's self-developed Cardiovalve is a transcatheter interventional valve replacement innovative system
that can treat both mitral and tricuspid regurgitation.
On January 10, Kanglong Chemical announced the successful acquisition of Recipharm's Cramlington-based Aesica Pharmaceuticals to further strengthen the overall strength
of its small molecule CDMO service platform.
Aesica Pharmaceuticals, located in Newcastle, UK, has a production capacity of more than 100 cubic meters of reactors, providing cGMP API manufacturing services
from pilot to tonne commercial scale.
The manufacturing facility has been verified and certified
by a number of regulatory agencies, including the U.
S.
Food and Drug Administration (FDA).
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Statistics show that in the first half of 2022, there were 13 cases of Chinese mergers and acquisitions of overseas medical and health enterprises, with a total disclosed transaction value of US$1.
59 billion
.
From the perspective of the reasons for local pharmaceutical companies to initiate mergers and acquisitions, they mainly include supplementing the company's product line and innovative technologies; Improve the industrial layout and lengthen the industrial chain; Entering new industries through mergers and acquisitions, etc
.
It is worth mentioning that mergers and acquisitions in the biomedical field have not been smooth sailing
.
For example, on September 18, CXO head company Clarion disclosed that due to "regulatory reasons", the company and Snapdragon have not reached an agreement on future development plans and countermeasures, so it terminated the acquisition of overseas company SNAPDRAGON CHEMISTRY, INC.
(hereinafter referred to as "Snapdragon").

In February, Clarion announced its intention to acquire all of Snapdragon's equity in Snapdragon except for the equity
already held by Clarion through a merger for approximately $57.
94 million of its own funds.
Prior to the acquisition, Kelleying held 18.
18% of the shares, and after the completion of the acquisition, Clarion will hold 100% of the shares
of Snapdragon.
Snapdragon's main business is to provide route development, design and process optimization services
for the continuous reaction production of innovative drug APIs for large pharmaceutical companies and small and medium-sized innovative pharmaceutical companies in Europe and the United States.
The acquisition was initiated to further strengthen Clarion's R&D capabilities in the field of small molecule CDMO, especially in
continuous production technology.
In addition, the company hopes to expand the company's overseas presence
through Snapdragon's existing customer network.
The industry said that quickly entering the international market through the acquisition of overseas companies is indeed the choice of
many pharmaceutical companies.
However, the current environment is already forcing domestic industrial upgrading, and domestic pharmaceutical companies need to continuously improve their independent innovation capabilities in the future to have long-term returns and industry status
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.