Under the frequent acquisitions of this pharmaceutical company, it has begun to shift from buyer to seller

Recently, Fosun Pharma announced that the buyer and the buyer's holding company (both subsidiaries of the company) and the seller (including Sino-French (merger and acquisition) fund, Kaphy Invest, FCPE and Manxen sellers) signed a sale option agreement
。 Accordingly, the Purchaser irrevocably grants the Sale Option and undertakes that, upon exercise of the Sale Option by Sino-French (M&A) Fund (for itself and as agent of other Sellers), the Purchaser will enter into an equity purchase agreement to purchase the direct/indirect equity interests held by the Seller (i.
e.
Phixen société par actions simplifiée) and provide shareholder borrowings
to the Target Group.
The total transfer consideration and shareholder borrowings committed by the Buyer pursuant to the Sale Option Agreement do not exceed approximately EUR 210.
4 million
.
It is reported that the target group focuses on CDMO business and has rich technical accumulation and experience
in the field of technology development and manufacturing of sterile products (including high-barrier complex preparations) and biological products.
In addition, the target group has a global and diversified customer base, and has served more than 100 customers (mainly large multinational pharmaceutical companies and medium-sized European pharmaceutical companies).

It is worth noting that this large-scale acquisition is actually not uncommon
on the development path of Fosun Pharma.
According to Wind data, in 2017 alone, Fosun Pharma issued a total of 9 foreign investment announcements, including the acquisition of 65% equity of Smailcon, 100% equity of Tridem Pharma, 69.
25% equity of Henlin Biotechnology, 60% equity of Shenzhen Hengsheng Hospital, Chancheng Hospital, Dihuixin Medical, BNI, 97.
83% equity of Lyst Pharmaceutical, involving about 5 billion yuan
。 Since the beginning of this year, Fosun Pharma has also been initiating acquisitions, and on the evening of July 29, it announced that it intends to invest RMB 402.
486 million to acquire 49% of the equity of
Shanghai Futuo held by Fosun Health Control.
The company intends to contribute RMB 402,486,000 in cash to acquire 49% of the equity of Shanghai Futuo held by Fosun Health Control (corresponding to the registered capital of Shanghai Futuo of RMB 387.
1 million).

According to the data, Shanghai Futuo was established in October 2017, and its business scope includes engaging in the research and development of biological products, technical consultation, technology development, technology transfer and technical services in the fields of biotechnology and medical technology, and engaging in the import and export business of goods and technologies (projects subject to approval according to law can only be carried out after approval by relevant departments).

After the completion of this transaction, Fosun Pharma's shareholding in Shanghai Futuo will increase from 51% before the transaction to 100
%.
Before and after this transaction, Shanghai Futuo was an enterprise
within the scope of the group's consolidated statements.
On the whole, under the continuous mergers and acquisitions, Fosun Pharma is rapidly entering many fields
such as anti-infective drugs, gastric disease drugs, anti-tuberculosis drugs, and vaccines.
It has established a development framework
focusing on three major businesses: pharmaceuticals, devices and health.
However, the medicine should pay attention to the fact that in addition to the scenery, frequent external expansion brings more hidden dangers
behind it.
On the one hand, investment failure, on the other hand, complicated business and heavy financial pressure, will to a large extent put the growth trend of Fosun's main business at risk
.
According to the balance sheet for the first half of 2021, Fosun Pharma's current assets were RMB29.
206 billion, current liabilities were RMB28.
157 billion, and the current ratio was close to 1, which reflects the slowdown in Fosun Pharma's short-term solvency and liquidity ability
.
It is understood that in order to reduce the hidden dangers of development, Fosun Pharma has begun to turn from a buyer to a seller in recent years, focusing on its core main business
.
In 2021 alone, Fosun Pharma sold 25% of the equity of Tianjin Pharmaceutical, 100% of the equity of Foshan Chanxi, 75% of the equity of Taizhou Zhedong Medical Care Investment, 29.
02% of the equity of Yaneng Biotechnology, and 100% of the equity of Jinshi Medical Examination Institute, with a cumulative return of 4.
132 billion yuan; in 2022, it will sell 25% of the equity of Neck Rehabilitation Pharmaceutical.
.
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.