For pharmaceutical companies that are keen on "buying, buying, buying", the failure of acquisitions has become the norm

【Pharmaceutical Network Industry News】With the increasingly strict and standardized regulatory policies of China's pharmaceutical industry, the increasingly fierce competition environment, and the rising cost of new drug research and development, in the context of traditional pharmaceutical enterprises are under increasing growth pressure, in order to enhance their competitiveness, they are constantly opening up a wave of
mergers and acquisitions and investment.
Incomplete statistics show that as of mid-October 2022, more than 280 mergers and acquisitions have taken place in the biopharmaceutical industry in 2022, with a total amount of more than 70 billion yuan; In 2021, there were 308 mergers and acquisitions, with a total amount of 251.
625 billion yuan
.
It is worth noting that under the tide of mergers and acquisitions, the number of cases of mergers and acquisitions failing for various reasons is also increasing
.
It is reported that a number of pharmaceutical companies have chosen to terminate acquisitions
this year.
On November 2, Fosun Pharma announced that Fosun Pharma Industrial Pte.
Ltd, a holding subsidiary, had previously signed relevant equity transfer agreements with various sellers, intending to receive ONCOCARE MEDICAL PTE with a cash contribution of no more than S$218 million.
LTD.
has a total of 60% equity
.
Pursuant to the Share Transfer Agreement, the closing conditions precedent for the transaction must be satisfied (or waived) on or before the agreed date (or later date agreed in writing).

However, due to the many links involved in the closing of this transaction, all of them could not be reached within the period agreed by the parties (before October 30, 2022), so the parties agreed to terminate
the transaction in accordance with the agreement.
It is understood that the transaction information announced by Fosun Pharma on June 6 this year said that ONCOCARE was established in March 2007 and registered in Singapore, and is currently one of
the largest private oncology specialist medical centers in Singapore.
As of 6 June, ONCOCARE has a total of 7 clinics in major private medical centres in Singapore, including the only private women's oncology medical centre
in Singapore 。 On November 1, Wanbangde announced that as of the date of this announcement, Wanbangde and Central Success Developments Limited, Double Grace International Limited, Li Qian and Ammong finally failed to reach an agreement on the core terms of the transaction plan, and after friendly negotiation, the parties agreed to terminate the Share Transfer Intention Agreement
.
The company originally intended to acquire a 29.
5% stake
in Kangchen Pharmaceutical by paying cash.
On September 18, CXO leader Clarion disclosed the termination
of the acquisition of overseas company SNAPDRAGON CHEMISTRY, INC.
(hereinafter referred to as "Snapdragon") due to "regulatory reasons".
Regarding the reasons for terminating the acquisition, Clarion said that due to regulatory reasons, the company and Snapdragon have not yet agreed
on future development plans and countermeasures.
On March 6, the board of directors of Laobai People's Pharmacy decided to terminate the acquisition of 51% of the shares of Hebei Huatuo Pharmacy Pharmaceutical Chain Co.
, Ltd.
, and a business involving 1.
428 billion yuan and 715 stores fell through
.
The announcement pointed out that the termination of this transaction is related to Hebei Huatuo Pharmacy's failure to complete the asset divestiture of the target company and the delivery of the target equity within the agreed time.
.
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.