Pharmaceutical companies to start mergers and acquisitions boom intellectual property protection as the focus

Zhao Xu, an associate professor at the School of Intellectual Property at East China University of Political Science and Law, points out that one of the risks of mergers and acquisitions is intellectual property rights: "Intellectual property rights, as the lifeline of pharmaceutical enterprises, have gradually been elevated to the height of their survival or not, and the prevention and control of intellectual property risks has become one of the most important aspects of mergers and acquisitions of pharmaceutical enterprises." On November
16th, the second Global Mergers and Acquisitions Baishaquan Summit, co-sponsored by the Financial Work Office of the Zhejiang Provincial People's Government, the Zhejiang Industry and Commerce Federation and the China Mergers and Acquisitions Association, was held in Hangzhou.
lin Jianghan, director of strategy and operations, trading consulting services and medical health at EY Greater China, summed up the trends in the global pharmaceutical industry as high-tech, global and preventive: "First, high-tech means that with the progress of science and technology and the strengthening of computing power, our future drug research and development, clinical diagnostic design and so on will be more integrated with science and technology;
He further said that China's pharmaceutical industry has the above characteristics, but also has its own characteristics: First, health rose to the level of national strategy, you can see the future rapid rise of the domestic health industry trend;
Lin Jianghan pointed out that in recent years, Chinese pharmaceutical companies hope to achieve the "going out" internationalization strategy or further expand domestic business by means of mergers and acquisitions at home and abroad.
In response to the merger strategy, Lin Zhong, managing partner of Yanming Law Firm, advises: "Before investing, the enterprise needs to establish the purpose and plan of the merger and acquisition, form the merger strategy, in order to quickly identify the suitable potential targets, and fully implement the group's overall and transaction strategy; To agree on the framework, time and direction of the transaction, on the basis of a comprehensive, detailed and effective evaluation of the value of the target company, the terms of the transaction are designed to achieve the purpose of the transaction, and after investment, consideration should be given to ensuring the continued growth of the target company's business, to ensure that the development of the target company can implement the overall strategy of the Group and the transaction strategy, to achieve business integration.
in addition, Lin Zhong believes that there are more risks in overseas mergers and acquisitions, "overseas mergers and acquisitions to face different cultures, policies, regulations, industry norms, mergers and acquisitions in the process of more complex problems, more difficult to deal with, so the prevention and control of risk is particularly important." Zhao xu
associate professor at the School of Intellectual Property at East China University of Political Science and Law, also believes that mergers and acquisitions are a complex and systematic project. He pointed out that one of the risks of mergers and acquisitions is the issue of intellectual property rights: "Intellectual property rights as the lifeline of pharmaceutical enterprises, gradually promoted to the survival of enterprises or not, the prevention and control of intellectual property risks in pharmaceutical enterprises in the merger and acquisition of one of the most important content."
He believes that there are two main types of intellectual property risks involved in mergers and acquisitions by pharmaceutical companies: first, products or services are not adequately protected by intellectual property rights, which may result in the loss of market opportunities and cannot effectively exclude competition, and second, products or services that infringe on the intellectual property rights of others can not only be excluded from competition, but are likely to be liable for substantial compensation. (Daily Economic News)