The general trend of the development of A-share pharmaceutical listed companies formed by merger and acquisition funds

Source: pharmaceutical investment and merger club 2014-08-01 the pharmaceutical industry is going through the process of survival of the fittest, the improvement of concentration and the constant strength of the strong have become a common consensus The following summarizes several factors that are bad for small and medium-sized enterprises: 1 Natural competition, acquisition and merger; 2 Reform of medical insurance drug bidding system: drug price reduction / medical insurance fee control; 3 Basic drug system: supply and distribution are concentrated in a few; 4 Standard improvement: new pharmacopoeia, higher requirements of new GMP and other factors that lead to higher costs (for example, new GMP standard for injection in 2013 Due in December, enterprises need to rebuild new GMP plants and invest tens of millions of funds) 5 Crack down on Commercial Bribery: it is more difficult to give money directly 6 Waiting for the consistency evaluation of generic drugs (generic drugs and original drugs should be consistent in composition, dosage form, standard, effectiveness and safety); The list of top 100 pharmaceutical companies released by the south of China also supports the fact that the concentration of the industry is constantly increasing Sales accounted for 44.18% of the pharmaceutical industry in 2011, 44.9% in 2012 and 45.1% in 2013 The concentration continued to improve, and it is expected to exceed 50% in 2015 In addition to the difficulties of SMEs listed above due to industry factors, the stagnation of IPO in recent years has lost important financing and exit channels for some pharmaceutical enterprises with listing conditions, and being acquired is a kind of expedient measure We make statistics on the merger and acquisition of A-shares of pharmaceutical listed companies since 2011, and take SW pharmaceutical biology as the sample analysis, hoping to have some reference significance for enterprise merger and acquisition By the end of June 11, 2014, there were 175 shares of A-share SW Pharmaceutical Biology (excluding the current main business is not a pharmaceutical related listed company) Since 2011, 78 listed companies have had M & A activities (excluding the participation and the purchase with a price of less than 10 million), accounting for 44.6% of the 175 listed companies, and 10 more Listed companies are being suspended due to major events Among them, 15 acquisitions involve related transactions and 8 companies constitute major asset restructuring The main role of related party transactions is the domestic pharmaceutical group, among which the asset restructuring among the old brand groups such as Shanghai pharmaceutical, Guangzhou Pharmaceutical (Baiyunshan), Harbin Pharmaceutical Group, North China pharmaceutical, State Pharmaceutical Group (modern pharmaceutical), Tianshili, TIANYAO Co., Ltd., Nanjing Pharmaceutical, Peking University Pharmaceutical and so on accounts for the majority of the related party transactions Tianshili, Jiuzhoutong and magic pharmaceutical are also the asset injection behaviors behind the holding group (or related parties) The proportion of major asset restructuring is not large In three years, six companies have successfully restructured, but there is a trend of gradually accelerating: none in 2011, one in 2012: Puluo pharmaceutical; four in 2013: Lianhuan pharmaceutical, Jiaying pharmaceutical, magic pharmaceutical, Baiyunshan; In 2014, there were 1 Shanghai Laishi and 2 plans to be approved by China Securities Regulatory Commission: Tiger pharmaceutical and Xinfu pharmaceutical, and 10 other companies were suspended pending the acquisition plan In terms of the amount of M & A, there are 8 M & A with a total amount of more than 1 billion, 11 M & A with a value of 500-1 billion and 8 M & A with a value of 300-500 million There are now six overseas mergers and acquisitions, and the other two are still in final approval or negotiation These overseas M & as are mainly in the field of medical devices, medical services or biomedicine, perhaps related to the stage and background of various industries From the perspective of the sub industries, there are 48 mergers and acquisitions in chemical medicine industry, 26 in traditional Chinese medicine, 9 in medicine circulation, 20 in medical devices and 12 in medical services (5 in Hengkang medical acquisition hospital) With reference to the number of industry targets, there are 60 SW chemical drugs, 55 SW traditional Chinese medicine, 29 SW biological products, 12 SW medicine circulation, 19 SW medical devices, 4 SW medical services, with the highest activity of medical services and medical devices, followed by medicine circulation and chemical drugs, and the lowest activity of Chinese patent medicine It seems that the acquisition behavior is also related to the culture of each enterprise There are more than 5 enterprises acquired, including Guizhou bailing, Hengkang medical, Shanghai pharmaceutical, etc; There are more than 15 enterprises, including Xiangxue pharmaceutical, Kangzhi pharmaceutical, Cr 39, Huabei pharmaceutical, Watson biology, Nanjing Pharmaceutical, Renhe pharmaceutical, Fosun Pharmaceutical, modern pharmaceutical, Erkang pharmaceutical, Zhongyuan Xiehe, Tianshili, baolaite, dongfulong, Lepu medical, etc M & A fund has become the general trend Listed companies cooperate with professional investment institutions to make up for the lack of M & a capability The companies that have established M & A fund include aer Ophthalmology, Zhongheng group, Kunming Pharmaceutical, Wuhan Jianmin, Jingxin pharmaceutical, etc in addition, Yangpu medical and Hejia Co., Ltd set up subsidiaries to conduct M & A operations A typical case is that Aier ophthalmology has set up three funds, the first of which is responsible for M & a management, with Qianhai Oriental as the manager; the second is to cooperate with Huatai mainly as an LP, with Huatai as the only fund manager; the third is that Aier Ophthalmology's controlling shareholder and Zhongrong Kangjian have set up an Aier ophthalmology medical investment M & A fund