First half pharmaceutical mergers and acquisitions: 140 nearly 66 billion biopharmaceuticals into incense

Halfway through 2018, the heat of mergers and acquisitions by pharmaceutical listed companies has not diminished.
21st Century Economic Reporter according to Wind and listed companies announcement incomplete statistics, from January 1, 2018 to June 29, 2018, in the pharmaceutical and health listed companies, a total of 140 mergers and acquisitions occurred, a total amount of nearly 66 billion yuan, involving biopharmaceutical enterprises, medical services, retail pharmacies and other fields.
industry insiders in an interview with the 21st Century Economic Report, said that a large number of pharmaceutical listed enterprises to carry out mergers and acquisitions, mostly in order to improve the regional layout, extend the industrial chain, improve market value and so on. "For example, pharmaceutical companies to acquire hospitals, can enter the terminal, grasp some resources, the circulation of mergers and acquisitions can broaden the regional layout." On June 28, Shredding, founder of the third-party pharmaceutical services platform Maxcomley, said.
In addition, including Kuyou Capital Medical and Health Division Executive Partner Sun Yi, including industry insiders to the 21st century economic reporter pointed out that the merger is still inseparable from the two-vote system, graded diagnosis and treatment and other pharmaceutical industry reform policies.
on the trend of mergers and acquisitions, Sun Yi pointed out that domestic biopharmaceutical research and development in recent years has been better development, the field of mergers and acquisitions will be the mainstream of pharmaceutical mergers and acquisitions in the future. Shi Lichen believes that the future hospital mergers and acquisitions are expected to speed up, "because many pharmaceutical companies, to enter the terminal, need to master some hospital resources; " 140 mergers and acquisitions
an extended development, that is, through mergers and acquisitions and other ways to promote enterprise development, in recent years seems to have become the standard for pharmaceutical and health enterprises.
21st Century Economic Report reporter incomplete statistics, so far in 2018, the pharmaceutical and health industry listed companies have a total of 140 mergers and acquisitions. In January, 25 mergers and acquisitions were disclosed by listed companies, 18 in February, 19 in March and 23, 24 and 31 in April-June, respectively.
some listed companies of mergers and acquisitions news also showed a dense trend, such as in May alone, Bikang shares have announced four mergers and acquisitions news, respectively, to buy no more than 100 million yuan of Guangxi Pharmaceuticals 70% of the shares, no more than 25.9 million yuan to buy 70% of Four Seasons Huitong Pharmaceuticals, 12 million yuan to buy 30% of Sonnysser Biopharmaceuticals and 18 million yuan to buy Xi'an Combei Pharmaceuticals 100%.
Yihua Health announced four mergers and acquisitions between March and May, with a total offer of 1,055 million yuan to acquire a stake in Shandong Municipal Hospital Holding Group CO., Ltd., Yushan County Boao Hospital Co., Ltd. and four other enterprises.
In terms of transaction amount, 135 disclosed a specific number, the total size of 63.227 billion yuan - 65.837 billion yuan, a single transaction amount of more than 100 million yuan a total of 73 cases, of which more than 1 billion yuan reached 14 cases, such as Lepu Medical announced on February 28 that it intends to participate in the competition The 45 per cent stake in Xindonggang Pharmaceuticals, which has more than 460 direct stores in Hebei and Beijing, is to be bought for about Rmb1,384m on June 23rd.
addition, 1 of the more than $10 billion acquisitions, namely, China Biopharmaceuticals for about HK$12,896 million (approximately RMB10,874 million) for a 51% stake in China Bio, 52% of Super Demand Equity; There were 17 separate transactions of 10 million yuan and below, 30 cases of 10 million to 50 million yuan, and 15 cases between 50 million and 100 million yuan.
" from the merger and acquisition funds, the scale of the transaction is now growing, from around 2010 after 6-7 years, pharmaceutical companies have been integrated a lot of small enterprises, leaving some of the larger advantages of the target, serious by the policy impact, while IPO difficulties, many of the larger targets are considering selling, and listed companies are also very concerned about such targets, because it has a certain scale and risk resistance, relatively high acquisition amount. "On June 29th, Dongfang's chairman, Qiu Siwei, said in an interview with the 21st Century Economic Report.
the 21st century economic report reporter combed, the first half of 140 mergers and acquisitions covering the pharmaceutical industry, medical services, pharmaceutical circulation and other pharmaceutical and health industry in the whole field. Among them, there were 26 mergers and acquisitions in the field of pharmaceutical circulation, with a total value of about 3,879 million yuan, and 28 mergers and acquisitions in the field of biopharmaceuticals, with a total value of about 27.9 billion yuan.
, however, the number and amount of mergers and acquisitions in the pharmaceutical and health sector declined in the first half of 2018 compared with 400 in 2016 of about 180 billion yuan and more than 400 in 2017, according to the 21st Century Economic Report.
To this, Sun Yi to the 21st century economic reporter analysis pointed out that, on the one hand, after 2016, the market quality projects decreased, in addition, the fixed increase projects will be harsh conditions, resulting in listed companies financing difficulties, will affect the number of mergers and acquisitions in related sub-sectors. "It's set to increase by $2 trillion in 2016 and drop to hundreds of billions in 2017, affecting mergers and acquisitions of listed companies."
addition, the general view in the industry is that the success rate of mergers and acquisitions is not 100%, but also faced with the differences of opinion between the parties to the transaction, the lack of professionalism of the merger and acquisition parties and other issues.
Rushanhe Pharmaceuticals Co., Ltd. announced on June 28th that its bid for a 75.7408 percent stake in Emerging (Iron Ridge) Pharmaceuticals ultimately failed because the bid exceeded the company's research-determined valuation. The proposed 3 billion yuan acquisition of 74.5262% of Kanze Pharmaceuticals and 100% of Zhejiang Ed ended in failure because of the failure to agree with Zhejiang Ed shareholders on the adjustment of the core terms of the transaction's underlying valuation and performance commitments.Policy Assistance
According to the announcements of listed companies, the 21st century economic report reporter combed found that the relevant enterprises to carry out mergers and acquisitions, the purpose includes improving the layout, extending the industrial chain, the development of new business sectors, and is obviously driven by policy.
" enterprises to carry out mergers and acquisitions, the important reason is market competition, hoping to expand the scale, occupy more market share. "Slichen also told the 21st Century Economic Reporter.
E.e. in improving the industrial layout, Bikang shares in the proposed acquisition of 51% of Kangliyuan Pharmaceuticals, said that investment in Kangliyuan Pharmaceuticals is an important step to actively expand the Hebei market, make full use of Kangliyuan Pharmaceuticals to cover the Zhangjiakou area of the second, third and third hospitals and terminal sales network advantages to rapidly expand the market.
pharmacy said it would add 462 stores in Hebei and Beijing after acquiring the new pharmacy. Previously, Yifeng Pharmacy's operating area was mainly concentrated in the central and southern regions and eastern China.
addition, there are some enterprises hope to develop and expand new business sectors through mergers and acquisitions. Shanghai Pharma, for example, said that by acquiring a 100% stake in Takeda Chromo Beteiligungs AG, which indirectly holds a 26.34 percent stake in Temper Bioscics, it will fill the product gap in shanghai Pharma's natural urine protein drugs and critical care sub-treatments.
, which is investing in Australia's Viralytics, said the introduction of Viralytics-related products could complement the company's line of oncology immunotherapy. Zhang Zhibin, deputy general manager of Lepu Medical, also mentioned in an interview with 21st Century Economic Report that tumor immunity will be one of the directions of Lepu Medical's future layout.
, and despite the different purposes of mergers and acquisitions, a series of reforms in the field of medical and health care have become a common factor behind mergers and acquisitions.
such as the above 26 mergers and acquisitions in the field of pharmaceutical circulation, two-vote system, prescription outflow, etc. has become an important driving force.
Baiyunshan said in its "Significant Asset Purchase Report (Revised) " disclosed on January 6th that in the long run, the "two-vote system" would promote industry consolidation, small commercial companies with no upstream resources and no downstream networks would be eliminated, and the concentration of the pharmaceutical distribution industry would be further enhanced. On May 31, Baiyunshan officially completed the acquisition of a 30% stake in Guangzhou Pharmaceuticals in a deal valued at 1,094 million yuan.
, the state has been encouraging mergers and acquisitions in the pharmaceutical distribution industry in recent years.
so before the Ministry of Commerce made it clear that the concentration of the pharmaceutical circulation industry should be increased to encourage mergers and acquisitions to achieve. According to the 2017 Statistical Analysis Report on the Operation of the Drug Distribution Industry released by the Ministry of Commerce on June 21, the chain rate of drug retail enterprises has further improved, reaching 50.5% as of November 2017, up 1.1% YoY. The total number of drug retail stores in the top 100 in 2017 reached 583.55 million, accounting for 12.9% of the total number of retail stores in the country.
"with the outflow of prescriptions from large hospitals, the policy of graded diagnosis and treatment will continue, and the heat of mergers and acquisitions in the field of circulation and commercial pharmacies will continue." Sun Yi pointed out that the policy will be one of the backgrounds to promote mergers and acquisitions. biomedicine "hot"
from the sub-sector, the 21st century economic reporter combed found that biomedicine has become the hot spot of mergers and acquisitions being chased. In the first half of 2018, Coenbet, Bikang, Xiang Xue Pharmaceuticals and Lame Pharmaceuticals have stepped in to lay out the biopharmaceutical sector.
of the 140 mergers and acquisitions and nearly 66 billion yuan in transactions mentioned above, biopharmaceuticals accounted for 28 seats, accounting for 20%, and the total amount reached 27.9 billion yuan, accounting for more than 40%.
In addition, biopharmaceuticals single acquisition amount is also higher, more than 500 million yuan of a total of 10, such as China Source Concord bid 1.2 billion yuan to buy 100% of Shanghai Aoyuan 100% stake;
addition, investment in biopharmaceuticals has also been hot. In January-June 2018, 11 biopharmaceutical companies, including Keystone Pharmaceuticals, Xinda Bio and Huali Pharmaceuticals, announced the completion of financing, with a total size of nearly US$1.03 billion (about RMB6.602 billion), according to incomplete statistics from 21st Century Economic Reporters.
the biopharmaceutical sector mergers and acquisitions, investment is showing a hot trend, a number of biopharmaceutical companies and investment institutions said that the current policy, talent are helping the development of biopharmaceuticals. As GIC (sovereign wealth fund Singapore Government Investment Corporation) said in a written interview in response to the 21st Century Economic Report reporter, the reason for choosing to invest in bio-innovative drugs is because of the policy support, the return of talented people and China's huge market size of health care.
in the acquisition of Jia and Bio Equity, Kang Enbei also mentioned that in recent years, under the policy support and technology to promote China's biopharmaceus industry will usher in a new era. "The five monoantigens of qutoju, beva bead monoanti, nitozhu monoanti, lytoxidone and rejust are also negotiated to include health insurance."
the future of mergers and acquisitions, the industry view that biopharmaceutical mergers and acquisitions have shown a rapid trend. According to PwC, there were 19 transactions in biology and biotechnology in the first half of 2016, 23 in the second half and 36 in the first half of 2017. "While the number and volume of mergers and acquisitions by strategic investors as a whole have declined, the number of transactions in the biological and biotechnology sectors has risen significantly."
" domestic biopharmaceutical research and development in recent years has a better development, the current biopharmaceutical mergers and acquisitions to the field of oncology-based, involving the target pd1, pdl1, her2 and other clinical adaptation certificate applications of a wide range of projects. Sun Yi also told the 21st Century Economic Report, "I believe that the domestic biopharmaceutical mergers and acquisitions will be the mainstream of pharmaceutical mergers and acquisitions in the future."
In the view of Qiu, these 28 mergers and acquisitions are related to biopharmaceuticals, compared with the past four or five years, this proportion is very high, but in the future this proportion will be more and more, listed companies will be a trend of mergers and acquisitions of biopharmaceuticals, and will be an inevitable trend.
, however, in the eyes of the industry, due to the existence of high technical thresholds for biomedicine, long return cycle and other issues, if the capital side is not professional enough, will lead to a rise in failure rate. hospital is "sought after
from the actual merger case, the 21st century economic reporter found that the hospital has also become a lot of enterprises of the subject of mergers and acquisitions.
In the first half of 2018, there were 14 hospital mergers and acquisitions totaling 6,547 million yuan, involving many medical institutions such as MaAnshan City Center Hospital, Zen City Hospital, Seven Coal Hospital, Double Mine Hospital, Baishui Jimin Hospital, and Six Panshui Residential Hospital.
in addition to Hengkang Medical, Zhongzhu Medical and other medical services enterprises, 21st century economic reporters found that including Tonghua Jinma, Kangzhi Pharmaceuticals, Lingkang Pharmaceuticals and other pharmaceutical companies have also joined the camp of mergers and acquisitions of hospitals. For example, Kangzhi Pharmaceuticals announced on June 2 that it intends to use cash of 321.3 million yuan to acquire a 100% stake in Guangzhou Ruiyu, thereby indirectly holding a 51% stake in the target hospital, Yunnan Jiuzhou Hospital, and a 51% stake in Kunming and Wanjia Maternity Hospital.
Tonghua Jinma announced on May 23rd that it intends to acquire 84.14 percent of the shares of Seven Rivers Seven Coal Hospital, Shuang yashan Double Mine Hospital, ChixiJi Mine Hospital, Crane Mine Hospital and Hekang Cancer Hospital for 2.19 billion yuan.
Sun Yi told the 21st Century Economic Report that pharmaceutical companies are buying hospitals to create a closed-loop ecology of medicine, diagnosis and treatment, research and development. "Generally it's about acquiring specialist hospitals that are related to their products." Shi Lichen also believes that pharmaceutical companies to acquire hospitals is the hope to enter the terminal, grasp some hospital resources.
as the main children's medicine production enterprises, Kangzhi Pharmaceuticals acquired the Yunnan Jiuzhou Hospital and 10,000 maternity hospitals are related to children.
Kangzhi Pharmaceuticals said that Kyushe Hospital and 10,000 hospitals are private hospitals with assisted reproduction (IVF) qualifications, the acquisition is the company's implementation of the "children's health" strategy of specific initiatives.
also mentioned in the above-mentioned mergers and acquisitions, through the acquisition of medical services institutions can extend downstream of the industry, in the research and development, production and sale of drugs on the basis of the company's business to expand to the downstream area of integrated medical services. "On the one hand, you can reduce the marketing costs of some products, on the other hand, you can go upstream and downstream to improve the medical industry chain."
on the specific target, Shli