Listed pharmaceutical companies launched a wave of mergers and acquisitions: more than 170 mergers and acquisitions during the year, with a total amount of nearly 50 billion yuan

【Pharmaceutical Network Industry Dynamics】For listed pharmaceutical companies, in the context of fierce competition in the pharmaceutical market and increasing corporate challenges, mergers and acquisitions may help companies achieve certain growth
.

Since 2022, the enthusiasm for mergers and acquisitions of listed pharmaceutical companies has been high, according to statistics, pharmaceutical companies have launched more than 170 mergers and acquisitions during the year, with a total amount of nearly 50 billion yuan
.

Just in August, a number of pharmaceutical companies launched merger and acquisition plans
.

For example, Jianmin Group recently announced that the company intends to transfer 100% of the equity of Zhejiang Huafang Medical Care Co.
, Ltd.
held by related parties Holley Pharmaceutical Group Co.
, Ltd.
, Zhejiang Holley Investment Management Co.
, Ltd.
, Suzhou Yuanyi Zhiyuan Equity Investment Partnership, etc.
with its own funds, with a total transaction consideration of 15.
2044 million yuan
.

On August 10, Buchang Pharmaceutical announced that its holding subsidiary, Buchang Health Industry (Zhejiang) Co.
, Ltd.
, intends to acquire 100% of the equity of Buchang Health Management (Shanghai) Co.
, Ltd.
for a total transaction price of 48.
88 million yuan
.

Huadong Pharmaceutical announced on August 9 that its wholly-owned subsidiary, Sino-US Huadong, will invest a total of no more than 396 million yuan, and obtain 60% of the equity of Huaren Technology in the form of capital increase and share transfer, becoming its controlling shareholder
.

Duorui Pharmaceutical announced on the 9th that the company signed an "Investment Intention Agreement" with Hubei Tianji Pharmaceutical Co.
, Ltd.
and Bozhou Tianji Pharmaceutical Co.
, Ltd.
, and the company intends to transfer 40% of the equity
of Bozhou Tianji held by Hubei Tianji.

After the completion of the equity transfer, the company will hold 40% of the equity of
Bozhou Tianji.

Baiyun Mountain disclosed on the evening of August 7 that the company intends to acquire 18.
1847% of the shares
of Guangzhou Pharmaceutical held by United Meihua for 1.
003 billion yuan in cash.

After the completion of this transaction, BaiyunShan's shareholding ratio in Guangzhou Pharmaceutical will increase to 90.
9237%.
On August 1, China Resources Shuanghe also launched a merger and acquisition plan, and the company intends to acquire 50.
11% of the equity of Shenzhou Biotechnology
Co.
, Ltd.
for 502 million yuan.

These include: 21.
88% equity of Shenzhou Biology held by Aerospace Shenzhou Biotechnology Group Co.
, Ltd.
, 16.
33% equity of Shenzhou Biology held by Aerospace Investment Holding Co.
, Ltd.
, 8.
33% equity of Shenzhou Biology held by China Dongfanghong Satellite Co.
, Ltd.
, and 3.
57% equity
of Shenzhou Biology held by Beijing Dongfanghong Aerospace Biotechnology Co.
, Ltd.

.
.
.
.
.
.
From the perspective of the reasons why these pharmaceutical companies launch mergers and acquisitions, some are to increase the company's business expansion, some are to further enhance the company's profitability, and some are to seize the opportunity to expand pipelines and develop cutting-edge technologies
, as well as the layout of internationalization.

The industry believes that in the context of the current medical reform policies such as collection, medical insurance control costs, and consistency evaluation, pharmaceutical companies are under obvious pressure, and in this context, pharmaceutical companies have to accelerate transformation and upgrading
.

Relatively speaking, mergers and acquisitions are a way to "take shortcuts" and achieve quick results, and the industry expects that the future mergers and acquisitions of listed pharmaceutical companies may become the norm, while a number of small and medium-sized enterprises may be eliminated at an accelerated pace, and the concentration of the entire industry is expected to be continuously improved
.

It is worth mentioning that the merger and acquisition of pharmaceutical companies does not mean that it will necessarily succeed, and its process also faces layers of tests and challenges
.

For example, the recent news of Buchang Pharmaceutical's high-priced acquisition of a negative equity company has attracted the attention of
the Shanghai Stock Exchange.

On the evening of August 17, the Shanghai Stock Exchange issued a regulatory work letter
on the acquisition of Buchang Pharmaceutical.

Since the net asset book value of the subject of the acquisition was -12.
0849 million yuan, and the acquisition appreciation rate was as high as 505.
46%, the SSE required Buchang Pharmaceutical to make supplementary disclosures
on a large number of matters such as "whether there was a transfer of benefits in the transaction", "whether it was harmful to the interests of minority shareholders", and "whether the directors and supervisors were diligent and conscientious".

Disclaimer: In no event shall the information or opinions expressed herein constitute investment advice
to any person.