Japan's Kobayashi pharmaceutical acquires China's loss making pharmaceutical companies to enter China

[China Pharmaceutical network enterprise news]· Although Xiaolin pharmaceutical is not very famous in China's pharmaceutical industry, its reputation in China is booming with the emergence of overseas purchasing craze in recent years Many products are sought after as "magic medicine" by Chinese consumers Now it has officially entered China through the merger and acquisition of a loss making pharmaceutical enterprise, and its headquarters in China is located in Shanghai Whether its main antipyretic and liquid band aid products can compete fiercely Take market share now? On March 29, Kobayashi Pharmaceutical Co., Ltd of Japan released a notice on the acquisition of Chinese pharmaceutical companies and the establishment of its head office in China In order to develop and expand its sales in the Chinese market, it said it would acquire all the shares of Jiangsu Zhongdan Pharmaceutical Co., Ltd (hereinafter referred to as "Zhongdan pharmaceutical"), a Chinese pharmaceutical manufacturer, and set up Xiaolin pharmaceutical head office in China Although Xiaolin pharmaceutical is not well-known in China's pharmaceutical industry, with the emergence of overseas purchasing craze in recent years, Xiaolin pharmaceutical is well-known in China Many products are sought after as "magic medicine" by Chinese consumers In addition to toilet covers, it has become another hot brand in Japan, which is a frequent customer in the popular buying army, especially "antipyretics", "liquid band aids" and other medicines Products are more popular in China As early as 2015, its sales to Chinese tourists in Japan reached 4.3 billion yen (about 254 million yuan), compared with 2.3 billion yen in the previous year, and the sales to Chinese tourists alone accounted for 3% of the total sales Xiao Lin Zhanghao, President of Xiaolin pharmaceutical, once said that he has analyzed Chinese consumers as an independent customer group His view is that Chinese people have confidence in Japanese cosmetics, but it is not convenient to buy or hoard them every time they travel, which will make the company's sales performance unstable In order to obtain a larger Chinese market, Xiaolin pharmaceutical announced plans at the beginning of last year that it will invest about 30 billion yen (about 1.772 billion yuan) in the next three years to purchase local enterprises in the overseas market dominated by China and expand the overseas sales of pharmaceutical products A year later, its plan for China was officially implemented, with Zhongdan pharmaceutical included in Huaizhong, and the pharmaceutical sector officially entered China Previously, Kobayashi Pharmaceutical Co., Ltd set up "Shanghai Kobayashi Daily Chemical Co., Ltd." and "Shanghai Kobayashi Pharmaceutical Trading Co., Ltd." in China The former was jointly established in 1998 by Kobayashi pharmaceutical of Japan, Shanghai Friendship Group and Hong Kong benfeng Development Co., Ltd., focusing on daily chemical products The latter was established in 2007, with the business scope of daily necessities, cosmetics, handicrafts, hardware and electricity, etc Why to buy Zhongdan pharmaceutical? Zhongdan pharmaceutical is not a big company among Chinese pharmaceutical enterprises, nor is it well-known "Zhongdan pharmaceutical" acquired by Xiaolin pharmaceutical is a wholly-owned subsidiary of Jiangsu Zhongdan group established in 2003 According to the company, it is a comprehensive enterprise engaged in the research and development of medical devices, preparations, production and sales At the industrial level, China Dan pharmaceutical is located in the "skin medicine expert production enterprise" It has a 6000 square meter factory building It has two production lines including liniment, ointment, cream, gel, and four dosage forms It has formed seven series of anti acne, antifungal, psoriatic, anti chap, analgesic, anti infective, wind dispelling analgesics and other seven series 12 Varieties of 28 specifications of topical products In addition, it is worth noting that Zhongdan pharmaceutical is an overcapacity enterprise, so it is also engaged in the processing of various products while producing its own products In terms of sales, Zhongdan pharmaceutical said that its products have won the bid in the vast majority of national identities, and it has established a complete investment network and service system, covering 31 provinces and cities except Tibet According to the revenue data of nearly three years disclosed by Xiaolin pharmaceutical, from 2014 to 2016, the company achieved sales revenue of 18 million yuan, 18 million yuan and 20 million yuan respectively, while the net profit was - 2 million yuan and - 4 million yuan respectively, that is to say, the company acquired by Xiaolin pharmaceutical is currently in the stage of loss So, why does Xiaolin pharmaceutical take a fancy to this loss making enterprise and purchase it? For Xiaolin pharmaceutical, from the business level, its main focus is on the big health field related to fast-moving consumer, and its products in China focus more on the products related to skin drugs, so it is quite suitable in product types According to Xiaolin pharmaceutical planning, after entering the Chinese market, we will mainly increase the sales of antipyretic stickers, baby warmers and other products In addition, it is worth mentioning that due to the sufficient capacity of Sinopharm, it can meet the demand in the Chinese market and reduce the cost In addition, another reason for Xiaolin pharmaceutical's decision on M & A in China is that it believes that "the popularity of general medicine (general medicine) in China is gradually increasing, and the demand in China is also increasing, but due to the lack of understanding of the Chinese market and the relationship between the Chinese pharmacist system, the general medicine sales target set by Xiaolin group in 2017 has not been achieved." In this case, Xiaolin believes that through the merger and acquisition of Chinese projects to achieve localization, it will be more suitable for the Chinese system in terms of sales, so as to achieve the sales target of generic drugs in the Chinese market As Kobayashi said, "Sinopharm is proficient in China's pharmaceutical industry." Zhongdan pharmaceutical has China's pharmaceutical manufacturing experience, while Xiaolin pharmaceutical has sales capacity, R & D capacity and technical experience, which can achieve mutual synergy, so that general medicine can obtain greater gains in the Chinese market As for the specific process of merger and acquisition, according to the announcement, on March 29, the board of directors of Xiaolin pharmaceutical passed the resolution of the merger and acquisition, and signed the equity transfer contract on the same day As for the specific equity delivery, it is planned to be completed on June 30, 2018 In addition, as for the specific amount of M & A, the announcement of Kobayashi Pharmaceutical Co., Ltd said that it had not yet announced to the public Xiaolin pharmaceutical acquired a loss making enterprise It said that after the acquisition, Zhongdan pharmaceutical would become an affiliated subsidiary of Xiaolin pharmaceutical, but the impact on its performance in 2018 was slight 2 on March 29, the board of directors of Xiaolin Pharmaceutical Co., Ltd approved the merger and acquisition of Zhongdan Pharmaceutical Co., Ltd at the same time, it also considered and passed the resolution of establishing a pharmaceutical company in China For the reasons of establishing a head office in China, Xiaolin pharmaceutical said that by establishing a head office in China, it not only directly controls its current business in China, including the acquisition of Zhongdan pharmaceutical, to realize the operation of the group; In addition, in order to meet the needs of attaching importance to the Chinese market and expanding business, the head office, as a local group company, can better deal with the business management and investment more quickly Xiaolin Pharmaceutical (China) Co., Ltd is the head office of Xiaolin pharmaceutical in China, with its registered address in Shanghai and its legal representative as jibenshenyilang The main contents of the company are business management, capital management and business strategy formulation, etc The registered capital is US $20 million For the registration time of China's headquarters company, according to the plan of Xiaolin pharmaceutical, it is planned to be officially established in April 2018 It is understood that Xiaolin pharmaceutical was founded in 1886, mainly engaged in the research and development and production of drugs, medical devices, daily necessities, food, etc at present, in addition to the establishment of overseas companies in China, it also has a layout in the United States, the United Kingdom, Southeast Asia and other places According to Kyodo news agency, Kobayashi pharmaceutical entered the Chinese market through the acquisition opportunity, and achieved the goal of increasing the sales of drugs in China to 4 billion yen (about 250 million yuan) 10 years later According to the 2017 financial report of Xiaolin pharmaceutical, its revenue is 156.7 billion yen (about 9.259 billion yuan), and its net profit is 22.925 billion yen (about 1.353 billion yuan) Original title:! Japan's Kobayashi pharmaceutical, a popular purchasing agent, acquired China's loss making pharmaceutical companies and officially entered China! Its headquarters in China was established in Shanghai