Under the pressure of collection and medical insurance, local pharmaceutical companies are actively looking for new growth points

In recent years, with the normalization of a series of new medical reform policies and the impact of external factors such as the epidemic, domestic and foreign pharmaceutical companies, especially local pharmaceutical companies, are facing huge strategic adjustment or transformation and upgrading pressure
.

For example, when talking about the performance of the first half of the year, Fosun Pharma has said that on the one hand, the short-term pressure on the performance caused by the price reduction of collection and procurement; On the other hand, the domestic sporadic outbreak has had a relatively negative impact on all medicines and devices sold in hospitals
.

Local pharmaceutical companies are actively looking for new growth points (Source: Pharmaceutical Network) At present, in the face of an increasingly complex internal and external environment, many pharmaceutical companies have begun to actively adjust their strategic layout and transform and upgrade
.

Among them, there are not a few
companies that expand their business through "buying, buying and buying".

Recently, Kangzhe Pharmaceutical announced that the company acquired 60% of the equity of Hezhi Pharmaceutical (Guangzhou) Co.
, Ltd.
(hereinafter referred to as "Hezhi Pharmaceutical") through its subsidiary
Kangzhe Beauty.

After the completion of the acquisition, Hezhi Pharmaceutical will become a subsidiary of
it.

According to public information, the products of He Zero Pharmaceutical mainly include He Zero Soothing Moisturizing Repair Cream, He Zero Soothing Repair Milk and He Zero Soothing Moisturizing Bath Oil (dermatological grade skin care products).
On August 10, Buchang Pharmaceutical disclosed that Buchang Zhejiang, a holding subsidiary of the company, intends to acquire 100% of the equity
of Buchang Health Management with a net asset of -12.
08 million yuan for a price of 48.
88 million yuan.

On June 1, Dongyao Pharmaceutical issued an announcement that the company entered into a share subscription agreement
with Weiwu Suzhou Fund and Shengde Pharmaceutical Factory.

After the completion of the subscription agreement, the shareholding ratio of Weiwu Suzhou Fund and Shengde Pharmaceutical Factory will reach about 28.
68% and 28.
66%
respectively.

In April, ZHAOYAN New Drug, a leading CRO company, announced that on April 28, 2022, the company entered into an equity transfer agreement with Guanfang Group and Xieer Yunkang, which agreed that the company intended to acquire a 60% and 40% equity interest
in Weimei Biotechnology for 975 million yuan.

According to the announcement, Weimei Biotechnology is a supplier of Zhaoyan new drugs, and its main business is breeding and selling laboratory experimental models
.

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According to the data, in the first half of 2022 alone, the valuation of M&A transactions in the pharmaceutical industry has reached $61.
7 billion, with more than 130 transactions
.

From the overall point of view, the big health track has become one of the key areas for many pharmaceutical companies to acquire and invest in layout, and more and more pharmaceutical companies have begun to play the "health" card, try to break the single situation of product structure across borders, and look for new growth points
in performance.

It is reported that on April 19, Huahai Pharmaceutical co.
, Ltd.
newly established Zhejiang Freeze-dried Technology Co.
, Ltd.
with a registered capital of 10 million
.

Huahai Health Technology (Zhejiang) Co.
, Ltd.
, a wholly-owned subsidiary of Huahai Pharmaceutical, is a scientific and technological innovation company in the field of big health, and its business scope includes technology development and promotion; Food sales; Sale of health food (pre-packaged), etc
.

In addition, pharmaceutical companies such as Tongrentang, Ma Yinglong, and China Resources Sanjiu have already laid out the beauty field
.

In recent years, there are also many pharmaceutical companies in the tea, daily necessities and other industries are entering the market across borders
.

From the overall point of view, the industry believes that the current categories of cross-border operations of domestic pharmaceutical companies have been very rich, and cover many fields
from daily chemicals to health care to maternal and infant pregnancy.

It is worth noting that in addition to expanding new business and acquiring the clinical development and commercialization authority of products under development, there are not a few
pharmaceutical companies that have sought new performance by accelerating the promotion of international layout in recent years.

From the current point of view, with the help of License out, It has become a more "going to sea" method
used by Chinese innovative pharmaceutical companies.

For example, on August 15, Kangzhe Pharmaceutical issued an announcement that the Group was represented by Rxilient Medical Pte, a southeast Asian business company of the Company's subsidiary.
Ltd.
entered into licensing, cooperation and supply agreements
with Hefei Tianmai Biotechnology Development Co.
, Ltd.
, a biopharmaceutical company, for 2nd generation insulin series products and 3rd generation insulin analogue insulin glargine injection.

On July 28, CSPC Pharmaceutical Group announced that it has entered into an exclusive licensing agreement with Elevation Oncology, Inc.
for the development and commercialization of the anti-CLDN18.
2 antibody-conjugated drug SYSA1801 outside of Greater China, and that CSPC subsidiary Jushi Biotech will retain its interests
in Greater China.

On July 26, Kelun Pharmaceutical announced that its holding subsidiary, Sichuan Kelun Botai Biopharma Co.
, Ltd.
, has entered into a cooperation and exclusive licensing agreement with the US pharmaceutical company Merck to develop an antibody conjugate (ADC) drug for the treatment of solid tumors.
.
.
Industry analysts believe that the pharmaceutical industry will experience a new round of innovation and upgrading
under the continuous implementation of the medical reform policy.

For major pharmaceutical companies, they will continue to face more and different pressures: including the relative concentration of research and development pipelines, and there is still room for acceleration in the listing of
new drugs.

In this context, analysts believe that in the future, pharmaceutical companies will achieve industrial chain extension or product line expansion through investment, acquisition, etc.
, which will become the norm
in the pharmaceutical field.

Disclaimer: In no event shall the information or opinions expressed herein constitute investment advice
to any person.