In order to expand the pharmaceutical territory, this CRO company intends to initiate an acquisition!

【Pharmaceutical Network Industry News】The mission of CRO enterprises is to help pharmaceutical companies complete the research and development of
all links.
Although China's CRO industry started late, with the aging intensifying, the demand for medicine, especially innovative drugs, continues to grow, a series of supporting policies have been introduced, and the impact of globalization trends, the industry has developed rapidly and has great
potential.
Data show that the size of China's CRO market will be about 10 billion US dollars in 2021, and the CAGR will be about 30.
3% from 2021 to 2024, which shows that the CRO industry has broad
prospects.
However, in the future, industry barriers will be further improved, differentiated competition will further intensify, and industry concentration will also be improved
.
In order to expand its pharmaceutical territory, Sunshine Novo announced on October 24 that the company plans to purchase the equity of Beijing Langyan Life Science and Technology Holdings Co.
, Ltd.
(hereinafter referred to as Langyan Life) by issuing shares and paying cash, and issue shares to no more than 35 specific investors to raise matching funds
.
According to the data, Sunshine Novo is a CRO (contract research organization) for preclinical and clinical comprehensive drug research and development services, providing one-stop drug research and development services
for domestic pharmaceutical enterprises and scientific research institutions.
The company's main business covers comprehensive R&D services in innovative drug development, generic drug development and consistency evaluation, including drug discovery, pharmacological efficacy, pharmaceutical research, clinical research and biological analysis
.
The original main business of Langyan Life is to provide pharmaceutical research and development services to the outside world, which is small in scale, but the same
as the main business of Sunshine Novo.
It is worth mentioning that Langyan Life and Sunshine Novo are both assets
that Li Qian actually controls.
Langyan Life was the majority shareholder
of Sunshine Novo before its listing.
In 2016, all shareholders of Sunshine Softhe Co.
, Ltd.
transferred 100% of the shares held by Sunshine Novo Limited to Kawei Biologics (later renamed "Langyan Life").

Considering that both parties control the company by the same actual controller, since 2016, according to the company's overall strategic plan, all drug research and development service business has been carried out by Sunshine Novo, and Langyan Life is only used as an investment management platform and is no longer engaged in drug research and development service business
.
According to Sunshine Novo's prospectus (draft declaration), in 2018, after the completion of the capital increase of Sunshine Novo's predecessor, Beijing Kawei Biomedical Technology Co.
, Ltd.
(the former name of Longyan Life) held 92% of the shares
.
At the end of 2019, in order to help it go public independently, Langyan Life transferred its 92% equity
interest in Sunshine Novo Limited.
Since then, Langyan Life has withdrawn from the ranks of
shareholders.
However, after the spin-off of Sunshine Novohe, the company still has pharmaceutical manufacturing business, including two pharmaceutical manufacturing enterprises acquired since 2014, Yongan Pharmaceutical and Baiao Pharmaceutical, and two pharmaceutical sales companies, Guangdong Hongsen and Jiangxi Hongsen, to build a pharmaceutical manufacturing sector with Langyan Life as the core
.
They are mainly engaged in the production and sales of APIs and preparations, and are the downstream customers
of Sunshine Novo.
In addition, Longyan Life was also a major customer of
Sunshine.
In 2017~2019, Sunshine Novo's largest customer is Langyan Life
.
If the restructuring is carried out smoothly, Sunshine Novo will also open a new pattern
of "R&D service + pharmaceutical manufacturing" two-wheel drive.
At present, the company's shares have been suspended from the opening of the market on October 25, and the suspension is expected to not exceed 10 trading days
.
The company's third quarter report in 2022 shows that in the first three quarters of this year, the company achieved operating income of 495 million yuan, a year-on-year increase of 45.
19%; The net profit attributable to the parent was 129 million yuan, a year-on-year increase of 51.
42%, and both revenue and net profit achieved double-digit growth
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.