Pharmaceutical companies speed up the pace of M & A, and the global pharmaceutical landscape will change dramatically

[pharmaceutical Station industry trends] at the beginning of 2019, Bristol Myers Squibb announced the acquisition of new base medicine with us $74 billion, adding a huge M & A case to the pharmaceutical industry In mid-2019, Aberdeen announced that it would acquire Elgin for nearly $63 billion In addition to these two large-scale M & A cases, in 2019, a number of pharmaceutical companies made large-scale M & A, such as Eli Lilly's acquisition of Loxo oncology, a biopharmaceutical company, Takeda pharmaceutical's acquisition of shire with a total value of US $62 billion, Pfizer's acquisition of array Pharma with a total value of US $11.4 billion, etc The merger and acquisition of pharmaceutical enterprises is not new, but the phenomenon of large-scale merger and acquisition in the pharmaceutical industry is rare In this regard, according to the analysis of the insiders, with the expiration of the protection period of pharmaceutical enterprises in various countries and the increasing difficulty of new drug research and development, some will increase the investment in biomedicine, and some will directly make up their own shortcomings through merger and acquisition Merger and acquisition is one of the effective ways for multinational pharmaceutical enterprises to deal with the bottleneck of R & D and expiration of drug protection period "While raising the stock price through M & A, it will also increase the performance of the product line In this case, the global pharmaceutical industry pattern will change " Analysts said In the domestic market, the merger and acquisition among pharmaceutical enterprises are also in full swing For example, at the beginning of 2019, Jiangzhong pharmaceutical announced to purchase 51% equity of Sanghai pharmaceutical and Jisheng pharmaceutical with about 380 million yuan Inner Mongolia Jingxin, a wholly-owned subsidiary of Zhejiang Jingxin pharmaceutical, announced that it planned to purchase 86.67% of the equity of Yuanjin pharmaceutical held by Jingxin holding for 14.1826 million yuan On June 11, Tianjin HongRi Pharmaceutical Co., Ltd successfully transferred Gansu Fuci HongRi Pharmaceutical Co., Ltd., with a price of 134 million yuan On June 25, Fosun Pharmaceutical announced that Jinzhou AoHong Pharmaceutical Co., Ltd., the holding subsidiary of the company, intends to acquire about 70.56 million shares of Chengdu Liszt Pharmaceutical Co., Ltd through participating in public bidding and agreement, with a total investment of no more than about 747 million yuan After the completion of the transaction, it will be beneficial to further enrich the product line of Fosun Group Fosun Group will hold about 97.8521% of the equity of Lister company in total, and Lister company will be included in the consolidated statement of Fosun Group It is undeniable that the capital M & A of China's pharmaceutical industry in the past two years can be described as a raging storm, with continuous record being refreshed: in 2017, Fosun acquired Indian pharmaceutical enterprises with 7.1 billion yuan, which set a record of transaction amount of overseas M & A of Chinese pharmaceutical enterprises; in 2018, the number of M & A in China reached 437, a record high Industry experts said that with the tax system reform, as well as the continuous promotion of consistency evaluation and volume procurement, under the multiple effects of many policies, M & A among the pharmaceutical industry is imminent, and the number of end pharmaceutical enterprises will even be reduced by half It needs to be reminded that M & A will also bring adverse factors, such as the value or undervalued of the acquired company, the loss of personnel, the huge pressure on the future development of the company caused by debt M & A, and so on These adverse factors need to be considered by pharmaceutical companies before M & A "Many executives at large pharmaceutical companies say that rising drug prices will become increasingly difficult to drive and that providing clear innovation will become more important than ever," industry insiders said However, few big companies boast of having enough pipelines in stock Therefore, there may be an optimistic reason for those in the industry who want to see the M & a market rise this year "