Mergers and acquisitions in the pharmaceutical equipment industry have accelerated and the concentration is expected to increase in the future

On the evening of October 9, the CSRC disclosed that it had agreed to the registration application of Chutian Technology to issue shares, convertible corporate bonds to purchase assets and raise supporting funds on September 30.
's major asset restructuring plan was officially accepted by Shenzhen Stock Exchange on July 9 this year.
only 92 days from the time the application was accepted to the time it was approved.
three-year merger and acquisition draw to a successful end it is understood that Chutian Technology this major restructuring began in 2017, the target for the German pharmaceutical equipment manufacturing leader Romaco, its solid preparation production equipment solutions have a clear advantage.
, a joint controlling shareholder of Chutian, and other investors bought a 75.1 percent stake in Germany's Romaco for 1.1 billion yuan.
On June 9 this year, Chutian Technology announced a proposed 600 million yuan transaction price to acquire a 66.25 percent stake in its participating subsidiary Chutian Capital Management, which resulted in the passage of a series of bills to indirectly hold 97.37 percent of Romaco's shares.
also means that Chutian's overall loading of Romaco into a listed company has officially started.
now, after three years, the merger has finally come to an end.
the author learned that the performance growth of the underlying company is relatively stable, from 2017 to 2019, the average growth rate of operating income is 6.85 percent.
, the target company mainly provides products and services are mainly solid drugs production equipment, for Chutian's original business is a better complement.
In recent years, Chutian's acquisition action frequently, has successively acquired Changchun Xinhua Tong Pharmaceutical Equipment Co., Ltd. (later renamed Chutian Huatong), Pharmaceutical Design Institute, Chutian Feiyun and other shares, expanding the size of assets, broaden the product type.
public information shows that Chutian Technology is the leading pharmaceutical equipment enterprises in China, listed on the GEM on January 21, 2014, especially in the water pharmaceutical equipment production and sales of the forefront of the domestic industry.
addition to Chutian, Canaan Technology, Dongfulong and other large pharmaceutical companies in recent years have also carried out mergers and acquisitions activities.
For example, grain-making equipment listed company Canaan Technology in previous years has announced the acquisition of Wenzhou Xiaojiang Machinery Technology Co., Ltd., Yunnan Feiqi Technology Co., Ltd., Xiaojiang Machinery and other companies, and constantly bigger and stronger enterprises.
December 5, 2019, Canaan Technology announced that it intends to pay 24.75 million yuan in cash to acquire a 45% stake in Beijing Canaan Lemet Technology Co., Ltd., which will become a wholly owned subsidiary of the Company upon completion of the acquisition.
reasons for the company's series of acquisitions, in May, Canaan Technology responded to investors on an interactive platform that the company's out-of-country investment and mergers and acquisitions were based on the company's long-term planning and strategic objectives.
Fulong, which mainly owns medical freeze-drying machines and freeze-dried systems, is also accelerating mergers and acquisitions, acquiring stakes in companies such as Shanghai Ruipai Machinery, Shanghai Model Medical and Shanghai Jianzhong Medical in recent years.
It is understood that the field of medical devices is the focus of The East Fulong merger and acquisition, the company's investment-related person in charge has revealed its merger direction, one is to higher value-added, medium market capacity of consumables enterprises, the other is disinfection, sterilization enterprises, and the third is rehabilitation physiotherapy and other aspects of the company.
Conclusion At present, the domestic pharmaceutical equipment industry still has a low concentration, small scattered situation, with the acceleration of industrial mergers and acquisitions, as well as good policy plus code, market competition is increasingly fierce, will force the industry gradually from the low end to the middle and high end, some backward production capacity will accelerate the elimination, the future concentration or is expected to be improved.