Industry reshuffle intensified, and pharmaceutical companies began to break through

[pharmaceutical network industry trends] Nowadays, driven by the policies of two vote system, generic drug consistency evaluation, and "4 + 7" volume procurement, the pharmaceutical market in China is undergoing a major change, and the industry concentration is starting to improve, which also brings huge fluctuations to the development of pharmaceutical enterprises In this environment, both large pharmaceutical companies and small pharmaceutical companies are trying to make changes to deal with the crisis brought by the policy The data shows that in the first half of this year, the number of M & A cases of listed pharmaceutical companies reached 149, an increase of 36% over the same period last year From the perspective of target assets, there are 47 M & A cases in the pharmaceutical field mainly involving chemical medicine and traditional Chinese medicine production, accounting for about 30% of the total number of M & A cases in the first half of the year At the same time, M & A in the fields of biotechnology, medical equipment, medical services, mobile medicine and other subdivisions also increased significantly In fact, it can be seen clearly that in order to cope with the policies of 4 + 7 volume purchasing and two vote system, pharmaceutical enterprises take M & A as the main way to survive, and find new profit growth points through M & A In fact, this way is not uncommon in the industry As early as June 2018, China Resources Shuanghe announced that it has publicly delisted and acquired 45% equity of Hunan Xiangzhong Pharmaceutical Co., Ltd through Chongqing United Property Rights Exchange, with a transaction price of RMB 144 million In June last year, Tianjin HongRi Pharmaceutical Co., Ltd successfully transferred Gansu Fuci HongRi Pharmaceutical Co., Ltd for 134 million yuan Recently, Hubei Xinye Pharmaceutical Co., Ltd was incorporated into Sinopharm holding Xinye (Hubei) Pharmaceutical Co., Ltd and Wuhan Qingda Yuanzhi Pharmaceutical Co., Ltd was incorporated into Wuhan BeiSen Pharmaceutical Co., Ltd Some insiders said that if the pharmaceutical companies want to transform and upgrade in the future, they will either do large-scale M & A or strengthen R & D Recently, some generic pharmaceutical companies have taken frequent actions, in fact, more importantly, they have made positive efforts to shuffle and upgrade the industry To sell assets, focus on core business Different from the above-mentioned pharmaceutical enterprises, many large pharmaceutical enterprises need to deal with each decision prudently because of their large size, so they take more ways to adjust marketing business, shrink R & D pipelines, reduce costs, sell assets and other ways to activate funds Statistics show that in 2019, pharmaceutical companies completed 39 asset sales, while in 2017-2019, the total number of asset sales was 111 In recent years, the action of drug companies selling assets and focusing on core business has become more and more frequent For example, on December 30, 2019, humanwell announced that Zhongxiang medical, a wholly-owned subsidiary of the company, intends to sell all the real estate in the new hospital area of Zhongxiang people's hospital to Xingrui assets According to preliminary calculation, the investment income of the project is about 40 million yuan On January 6, Haier biology also announced that it would sell 75% of its stake in himI Kangji for 27 million yuan After the completion of the transaction, the company no longer has a business entity engaged in research and development, production and sales of molecular diagnosis POCT related products Among them, it is worth noting that Haizheng Pharmaceutical Co., Ltd issued a notice on January 7, 2020, stating that on January 6, the auction of 5 apartments located at block a, Junyue building, Jiaojiang District, Taizhou city was successful, with a total transaction amount of RMB 1.82 million According to incomplete statistics, since the beginning of 2019, Haizheng pharmaceutical has recovered 3.771 billion yuan by selling assets, which is three times of the net profit of 1.255 billion yuan in the first three quarters of 2019 The industry believes that pharmaceutical companies can change their business structure from "buy, buy" to "sell, sell and sell", from diversification to main business It can not only separate related business units, but also focus on strong business to meet the needs of the company's strategic transformation in the current business environment In the future, it may be more helpful for pharmaceutical enterprises to further activate assets, optimize resource allocation, focus on core business and control operational risks.