In the era of "post generic drugs", pharmaceutical companies are holding group heating through the strategy of M & A

[industry trends of pharmaceutical network] now it is in the era of "post generics" The problem of overproduction of generics is prominent The growth rate of net profit of many pharmaceutical companies slowed down in 2018, or even showed negative growth With the promotion of policies such as volume purchasing, the market pattern is facing reconstruction Many multinational or local pharmaceutical enterprises are holding a group to keep warm through M & A Industry statistics show that since the second quarter of 2019, China's M & a market has completed 378 M & A transactions, a year-on-year decrease of 39.7% and a month on month decrease of 14.1% Among them, the number of M & A cases in the biomedical industry ranked first in all industries, with a total of 49 cases For multinational pharmaceutical companies: on April 23, 2019, Lilly pharmaceutical announced the signing of an agreement with Yiteng pharmaceutical, a Chinese company, to sell to the latter the rights of hickory and reliable in the Chinese mainland market and the hickory production plant in Suzhou On July 10, 2019, GSK plans to sell 100% of its wholly-owned subsidiary GSK (Suzhou) in China for 250 million yuan According to the industry, under the implementation of the policy of volume purchase, the original mode of large-scale promotion of generic drugs by multinational pharmaceutical companies has been difficult to continue In addition to Lilly and GSK, many multinational pharmaceutical companies are making corresponding modifications For example, in the past 2018, multinational pharmaceutical companies including Roche and AstraZeneca have transferred the distribution rights of some mature drugs in the Chinese market Let's look at the situation of local pharmaceutical companies: for example, tailing pharmaceutical announced in July that the company plans to acquire Shanghai handu pharmaceutical, and the transaction will promote the transformation of the company into a biotech innovative pharmaceutical company According to the announcement, tailing pharmaceutical plans to issue 427 million new shares to acquire 40% of the equity of handu pharmaceutical, and at the same time, it will invest 25 million US dollars to subscribe for an additional 20% of the equity of handu pharmaceutical, and 5 million US dollars to subscribe for the convertible bonds issued by handu After the completion of the transaction, tailing will control 52% of handu For another example, saisheng pharmaceutical recently issued two consecutive investment and merger announcements, which are all related to the diversified strategy of the development of extension of saisheng pharmaceutical Including the purchase of 100% equity of sjb with 13.6704 million yuan, and the subscription of the newly increased registered capital of Puji pharmaceutical with 50 million yuan Xinlitai also disclosed in its 2018 annual report that the company's long-term equity investment at the end of the period reached 338 million yuan, accounting for 4.27% of the total assets, an increase of nearly 3.35% compared with the end of 2017 The company said that this was mainly due to the increased investment in Jinshi Biotechnology (Changshu) Co., Ltd., Sichuan Jinjiang Electronic Technology Co., Ltd and M.A Med alliance SA during the reporting period Meanwhile, compared with the end of 2017, the goodwill index of the company in 2018 increased by 294 million yuan, an increase of 337.06%, which is due to the acquisition of Suzhou Huanchen Medical Technology Co., Ltd in the reporting period In addition, the company increased about 45.53% and 101.31% in the reporting of available for sale financial assets and development expenditure items over the same period The industry believes that this is mainly formed by the acquisition or purchase of biomedical companies and related industries In addition to purchasing pharmaceutical enterprises, local pharmaceutical enterprises also have enthusiasm for purchasing hospitals Data statistics: from August 2016 to August 2019, 26 listed pharmaceutical companies launched 64 hospital acquisition and resale cases, involving 80 hospitals For some pharmaceutical companies, the medical service revenue can indeed bring income, but some pharmaceutical companies have to sell hospitals because of the "drag" of hospitals after acquisition For example, Xianju pharmaceutical announced in January this year that it plans to transfer 100% of the equity of Hangzhou hengha dental hospital, which is in a state of loss, divestiture the hospital assets and focus on the core business In general, the decision-making of active or passive M & A of pharmaceutical enterprises can improve the operation status of enterprises and enhance the market competitiveness of enterprises, but M & A also has risks, which need full investigation and scientific management after M & A.