Fosun Pharmaceutical acquired Indian pharmaceutical company Gl Pharma with 7.2 billion yuan

Source: 7.2 billion pharmaceutical companies' sky high price acquisition of cypress blue 2017-10-09 finally fell ▍ during the long National Day holiday, Fosun Pharmaceutical and Fosun International announced the acquisition of Indian pharmaceutical company gland Pharma with us $1.091 billion (equivalent to RMB 7.258 billion) in Hong Kong stock exchange Limited - this figure is second only to April this year Kerui group, the actual controlling shareholder of Shanghai Laishi, acquired biotest, a German plasma product manufacturer, and became the second largest pharmaceutical company in 2017 So far, the biggest overseas M & A case of Fosun Pharmaceutical, which has been delayed for half a year, has finally been settled According to the Hong Kong Stock Exchange announcement, Fosun Pharmaceutical announced on the same day that "in view of all the preconditions for the acquisition of the controlling interest of gland Pharma have been met, according to the terms of the transaction document and its amendment, the acquisition of the controlling interest of gland Pharma has been completed on October 3, 2017 After the closing, gland Pharma became a non wholly owned subsidiary indirectly held by Fosun Pharmaceutical and Fosun international Fosun Pharmaceutical and Fosun International (through Fosun Pharmaceutical) indirectly held about 74% of the equity of gland Pharma, and the financial performance of gland Pharma will be incorporated into the financial statements of Fosun Pharmaceutical and Fosun international " According to the public information, Glandpharma, founded in 1978 and headquartered in Hyderabad, India, is the first manufacturer of injection drugs approved by the U.S FDA and the first manufacturer of injection drugs approved by the U.S FDA At the same time, glandpharma has the ability of registration, declaration and sales in major markets in Europe and America At present, its business income mainly comes from the U.S and Europe It is reported that gland Pharma currently mainly provides manufacturing services for injection imitation drugs for large pharmaceutical companies around the world through joint development and introduction license According to the audited financial report, the operating revenue and net profit of 2016 financial year (April 1, 2015 to March 31, 2016) are RMB 1.358 billion and RMB 314 million respectively ▍ in fact, the European and American markets that have been opened up, Fosun Pharmaceutical's ambition for gland Pharma has been announced as early as a year ago In July 2016, Fosun announced the acquisition of 86% of gland Pharma, an Indian injection pharmaceutical company, for us $1.26 billion (about RMB 8.5 billion) - at that time, the transaction set a record for the amount of overseas acquisitions by Chinese pharmaceutical companies On April 27, 2017, Fosun Pharmaceutical announced that the transaction has been approved by China Development and Reform Commission, and the anti-monopoly declaration of the United States and India has been completed; in addition, the transaction has been reviewed by India Foreign Investment Promotion Commission (FIPB), and will be recommended to CCEA for further review and approval To this end, both parties decided to extend the termination date of the transaction to July 27 this year On the evening of July 27, 2017, Fosun Pharmaceutical announced again that the above-mentioned acquisition still needs to be reviewed and approved by CCEA, and announced to extend the transaction termination date to September 26 this year On September 19, 2017, Fosun Pharmaceutical announced that it would adjust its shareholding ratio, and proposed to invest no more than US $1.091 billion to acquire about 74% of the equity of Indian pharmaceutical company gladpharma, including the contingent consideration of no more than US $25 million paid by the acquirer based on the listing and sale of enoxaparin in the United States The termination date of this transaction will be extended to October 3, 2017 With the arrival of the agreed time, the deal that Fosun aspires to win finally falls to pieces The mature European and American market platform behind gland pharma and the "circle of friends" of the pharmaceutical industry have finally been included by Fosun In this regard, the analysis of the investment pot network shows that it is not difficult to see from the business sector of gland Pharma that Fosun Pharmaceutical acquired the enterprise or to expand its own international pharmaceutical manufacturing and registration platform because the strength of gland is still at the leading level compared with some international enterprises In this way, gland will undoubtedly help Fosun to promote the industrial upgrading of pharmaceutical manufacturing business, accelerate the internationalization process, and enhance the company's share of the injection Market ▍ the "offshore outsourcing" of Chinese buyers is sorted out according to the public data As of July 2017, there were 20 cases of Chinese pharmaceutical industry going to sea, with a total amount of US $3.852 billion (about 26.2 billion yuan) In fact, in recent years, this number has been steadily rising According to PwC's earlier report, the total amount of overseas M & A transactions in China's health industry in 2016 was as high as 8 billion US dollars, with 85 transactions, compared with 1.5 billion US dollars and 25 transactions in 2015, up 433% and 240% respectively in one year According to media reports and analysis, in addition to the financial investment factors caused by the expectation of RMB devaluation, in recent two years, the competition in the domestic drug market is fierce, and many factors, including consistency evaluation and medical insurance price reduction, have a serious impact on the short-term of drug companies The past days of relying on a single product to achieve a large profit are gone forever, so it is also hoped that domestic drug companies aim at overseas M & A Hope to broaden the way of profit Chen Qiyu, executive director and chairman of Fosun Pharmaceutical, previously made the same judgment in response to the acquisition of Indian pharmaceutical companies: "China's medical industry market will be one of the most important markets in the world, and it is already the second largest market in the world According to the global market rules, with the emergence of a huge market, a large-scale healthcare industry with local and global influence will certainly be formed in the industry We also hope that medicine can do more in the middle of it " A notable phenomenon is that more and more consortiums want to join the "transnational buyer" industry in the health industry, which also promotes the outbreak of overseas M & A cases in the past two years, including China Ping An, China Life Insurance and other insurance companies in recent years are also more and more involved in the process of M & A and privatization of pharmaceutical enterprises.