Great writing! This high-profile pharmaceutical company spent 1.4 billion yuan to increase the weight of biological medicine

[industry news of pharmaceutical network] on January 6, LVYE pharmaceutical released the notice on disclosure, related transactions and special general meeting of shareholders concerning acquisition of Shandong Boan equity According to the announcement, LVYE pharmaceutical has conditions to agree to purchase, while LVYE Investment Group has conditions to agree to sell its 98% stake in Shandong Boan In fact, on December 1, 2019, LVYE pharmaceutical announced that its wholly-owned subsidiary Shandong LVYE and LVYE investment group had entered into a sale and purchase agreement, and Shandong LVYE would acquire 98.0% equity of Shandong Boan held by LVYE investment group, acquire all intellectual property rights of the latter, such as antibody drug management line project, antibody screening platform, antibody production platform and other assets According to the agreement at that time, LVYE pharmaceutical will pay related fees in three stages, including the first payment of 723 million yuan and two subsequent payments of 362 million yuan, totaling 1487 million yuan Each payment shall be made only after ly01008 and ly06006 are respectively approved by the competent Chinese authorities for marketing It is reported that ly01008 and ly06006 are two biological similar drug products being developed by Shandong Boan, which are currently in phase III clinical trials in China It is worth noting that prior to the acquisition, LVYE Pharmaceutical Co., Ltd has collected four antibody biological analogues from Boan, Shandong Province, one of which will be launched around 2021 According to the data, Shandong Boan is a biotechnology company specializing in tumor, central nervous system, diabetes and immune diseases The business of LVYE pharmaceutical is mainly composed of four parts: medicine for tumor field, medicine for central nervous system, medicine for digestion and metabolism field and medicine for cardiovascular field In the first half of 2019, the drug revenue in these four fields respectively accounted for 45%, 20%, 18% and 15% of the total revenue Among them, cancer medicine is the core business of LVYE pharmaceutical At present, in the first half of 2019, the sales revenue of Lipitor, the highlight product in the drug mix in the field of cancer, reached 1.27 billion yuan, accounting for 90.39% of the total drug consumption in the field of cancer in the same period, and 40.7% of the total revenue of green leaf pharmaceutical in the same period It can be seen that the cancer medicine sector of LVYE pharmaceutical excessively relies on a single product In terms of the 18 tumor research and development products launched by LVYE at home and abroad, the rapid progress includes ly1005 and ly1008 in phase 3 of clinical trials According to the industry, in terms of the progress and indications of the products under research, the two drugs are still a long way from being approved for production, and there is no product to replace the position of Lipitor It can be seen that LVYE pharmaceutical is currently weak in endogenous R & D, and it is reasonable to purchase Shandong Boan this round In the future, LVYE hopes not only to further expand and diversify its product line under research, but also to further accelerate its growth and penetration in the fast-growing biopharmaceutical segment It is understood that in the field of Biopharmaceutics, green leaf pharmaceutical is also increasing the weight of Biopharmaceutics in recent years In August 2017 and December 2018, the company tried to introduce four bio similar drugs from Boan bio, and in 2018, it respectively introduced four bio similar drugs with Excel biopharm and elpis Biopharm and other U.S biological companies have reached exploratory cooperation on the next generation of antibody for tumor immunotherapy and development cooperation on car-t therapy Until now, they have won three antibody discovery platforms of Boan in Shandong Province, which also means that LVYE pharmaceutical has the industrial capacity of integrating discovery, screening, R & D, production and sales in the field of antibody biological drugs.