Why are large-scale mergers and acquisitions of global pharmaceutical enterprises continuing in 2019?

[pharmaceutical network industry trends] from the perspective of global market, the trend of M & A among pharmaceutical companies is strengthening Especially in 2019, it seems to be the year of M & A in the global pharmaceutical industry At the beginning of the year alone, there were two large-scale M & A transactions, namely, Bristol Myers Squibb's $74 billion acquisition of Xinji and Lilly's $8 billion acquisition of Loxo oncology In fact, the direction of M & A of the leading pharmaceutical companies is to some extent in line with the development direction of the industry Looking back on the M & A transactions of the world's leading pharmaceutical companies in 2019, the author finds that in 2019, the large-scale M & A of global pharmaceutical companies continued, mainly due to three reasons In 2019, pharmaceutical companies accelerated the divestiture of non core businesses Influenced by the "4 + 7" volume procurement and patent expiration, many pharmaceutical companies started the "sell sell" mode Accelerate the divestiture of non core businesses, and focus more on core businesses For example, this year, Novartis plans to transfer 100% of the equity of Suzhou Novartis Pharmaceutical Technology Co., Ltd after divestiture of technology and drug development assets to Jiuzhou Pharmaceutical Co., Ltd., GSK will sell its Suzhou factory and hepudine, a hepatitis B drug, to Fosun Pharmaceutical, etc In fact, the strategic adjustment and business divestiture of multinational pharmaceutical enterprises are not new As early as 2014, Novartis divested its influenza vaccine business with $275 million; in the same year, Bayer purchased Merck's health consumer products business with $14.2 billion; in 2016, GlaxoSmithKline, a British pharmaceutical company, sold the shares of Nanjing Meirui pharmaceutical held by the group in China, Meirui factory and local production and supply businesses related to three urinary products On the whole, in the past, multinational pharmaceutical companies always sought to expand and diversify Now, these enterprises are gradually returning to their core businesses and focusing on innovative drugs more and more It can be seen from the actions of multinational pharmaceutical companies in recent years that their focus is shifted to innovative drugs In the future, innovative drugs may become a magic weapon to influence the sales of pharmaceutical enterprises In recent years, the market scale of anti-tumor drugs has been expanding More and more enterprises have joined in the research and development of innovative drugs such as anti-tumor drugs, especially the research and development of PD-1 / PD-L1 antibody Some analysis companies predict that in the next five years, tumor treatment drugs will still be a better field in global sales
Therefore, as a popular field of pharmaceutical companies, in addition to more than 2000 tumor treatment drugs and vaccines are in different R & D stages, it also naturally runs through the headlines of large-scale M & A of pharmaceutical companies in 2019: the merger of tumor giant Bristol Myers Squibb and Xinji announced in January 2019, as well as the acquisition of tumor company Loxo by Lilly with 8 billion US dollars; and by the end of the year, by MSD Arqule and Sanofi were acquired for us $2.7 billion and synthorx for us $2.5 billion As a whole, major pharmaceutical companies have been expanding their tumor pipeline to prepare for market share In the future, this trend may continue However, if domestic pharmaceutical companies want to have more shares in this market, it is not enough to rely on favorable policies alone They need to develop a broader market by developing new drugs, especially targeted drugs, as far as possible In recent years, large pharmaceutical companies have encountered different degrees of patent cliff In July 2018, for example, Joe wolk, Johnson & Johnson's new CFO, said, "lost nearly $3 billion in revenue in about 15 months." As a result, pharmaceutical giants not only rely more and more on innovative heavyweight drug listing to drive performance, but also pursue the direction of new technology and new mode of M & A has become their market development strategy
Due to the high price and decreasing high-quality targets in the primary market, large-scale M & A based on thickened profits is more difficult; in terms of corporate strategy, traditional enterprises' m & A to emerging fields or surging winds, such as internet medical, new technology and new mode, the primary market will become the M & a vane of the secondary market; in addition, overseas M & A may also become a new development direction 。 Among them, along with the "Internet plus" born out of the world, internet medical care triggered the resonance of various capital, including listed companies, or became the hot investment in this year's health care industry