In detail, what are the next moves of the big M & A giants of global pharmaceutical enterprises in 2019?

Original: Mumu 2019 is a year of vigorous development of M & A in the global pharmaceutical industry At the beginning of the year, the pharmaceutical industry heard the news of heavyweight purchase, and Bristol Myers Squibb purchased new base with us $74 billion According to Luft's data, if debt is included, the transaction is worth 95 billion US dollars, which will surpass Pfizer's record of purchasing Warner Lambert with 89 billion US dollars in 2000 and become the largest acquisition in the history of pharmaceutical industry! In addition, in 2019, Elanco, an animal health company, acquired Bayer's animal health business and became the second largest animal health company in the world Amgen spent 2.7 billion US dollars to acquire 20.5% equity of Baiji Shenzhou, becoming the largest transaction between international Biopharmaceutical Enterprises and Chinese pharmaceutical enterprises, involving the largest product line, which is also the largest equity investment in the global biopharmaceutical field In addition, Roche has created the largest license for individual research projects in the field of cell and gene therapy for us $2.85 billion Figure 1: drug companies' m & A transactions with a transaction value of more than US $2 billion in 2019 (incomplete statistics) Source: public information, Zhongkang Industrial Capital Research Center The direction of M & A of pharmaceutical enterprise leaders can reflect the development direction of the industry to a certain extent Looking back on the M & A transactions of the global pharmaceutical enterprises in 2019, we can find the following characteristics: In recent years, the field of tumor is a hot spot in drug research and development, and also a hot spot in the layout of major pharmaceutical companies In 2019, nearly half of the transactions listed in the above table involve products in the field of tumor, among which the transaction amount is more than US $2 billion As a popular field for pharmaceutical companies, "tumor" runs through the headlines of large-scale M & A of pharmaceutical companies in 2019: from the merger of tumor giant Bristol Myers Squibb and Xinji announced in January 2019, to Pfizer's $11.4 billion acquisition of array in the middle of the year Biopharma, AstraZeneca and the first three pharmaceutical companies have licensed trastuzumab In December, some multinational pharmaceutical companies acquired early-stage companies, such as Merck, which acquired arqule and Sanofi for $2.7 billion and synthorx for $2.5 billion It can be seen that major pharmaceutical companies have been expanding their tumor pipeline to prepare for market share In 2019, not only two types of gene therapy were approved by the US FDA and EU respectively, but also many pharmaceutical companies actively arranged the field of gene therapy through M & A According to Vantage, the purchase of gene therapy products reached $17 billion in 2019 In the above table alone, 4 transactions were related to gene therapy Among them, Roche has created the largest license for individual research projects in the field of cell and gene therapy with us $2.85 billion In addition, there are some M & A transactions of less than $2 billion For example, in March 2019, Bojian acquired NightstarTherapeutics, an ophthalmic gene therapy company, for a total price of about $800 million; in August, Bayer announced the acquisition of BlueRock, an engineering Cell Therapeutics Inc committed to the development of neurology, cardiology and Immunology using the proprietary iPS cell platform And so on It can be seen that many large pharmaceutical companies are not less interested in gene therapy In fact, as early as January 2019, Dr Scott Gottlieb, director of the FDA and Dr Peter marks, director of the center for biological product evaluation and research, predicted that gene therapy would enter a booming era By 2020, the FDA would receive more than 200 inds a year, and by 2025, it was predicted that 10-20 cell and gene therapy products would be approved each year In 2019, several companies have made significant progress in gene and cell therapy, which will also accelerate the development of this momentum However, there are also challenges behind this rapid growth, such as a large number of early investment, high product prices, etc In addition, Michael choy, partner and managing director of Boston Consulting Group, said in an interview, "pharmaceutical companies will face the challenge of how to integrate gene and cell therapy into their overall business Gene and cell therapy does not fit the conventional paradigm of budget and decision-making, which needs to be adjusted according to different development speed and relevant expertise Companies are cramming gene therapy into their current models, but in the long run, changes must be made " In the past, multinational pharmaceutical companies always sought to expand and diversify Now, these companies are returning to their core businesses and focusing more and more on innovative drugs Especially in recent years, multinational pharmaceutical companies have taken more and more actions to divest non core business In 2014, Novartis divested its influenza vaccine business with $275 million; in the same year, Bayer purchased the health consumer goods business of MSD with $14.2 billion; in 2015, Lilly invested $5.4 billion to acquire Novartis's animal health products business; in 2016, Sanofi's animal health business and bringer Ingelheim's consumer health business exchange.. In 2019, it was subject to "4 + 7" volume procurement and patents Due to the impact, Pfizer has to be sold and merged into a new company with mylan, the largest generic pharmaceutical company In order to focus more on its main business, Bayer also divested its animal health business The focus of multinational pharmaceutical enterprises is to shift to innovative drugs In the future, multinational pharmaceutical enterprises will compete in innovative drugs Figure 2: adjustment of non core business of some multinational pharmaceutical enterprises Source: public information, Zhongkang Industrial Capital Research Center According to a recent survey conducted by KPMG, the CEOs of American life sciences companies still have a strong interest in M & A in 2020 According to a report released by Chris short, an analyst at JPMorgan Chase, companies are more likely to seek smaller acquisitions than large-scale ones after the "flood" of M & A transactions in 2019 In addition, Schott said: "we believe that by 2020, business development will shift to bundling, focusing on expanding existing treatment verticals and increasing potential IPO opportunities in the mid-1920s."