Yushengtang group signs intent agreement to acquire Japanese pharmaceutical enterprises

"Jinhua Qinggan" has entered the global market Beijing Yushengtang Pharmaceutical Group (01141, HK), a 400 year old traditional Chinese medicine brand, has recently made a big move, announcing that it will acquire 70% of the shares of 63 year old Japanese pharmaceutical industry Co., Ltd., so as to take the step to enter the international market Thanks to the promotion of recognition of traditional Chinese medicine in recent years, Beijing Yushengtang, which focuses on traditional Chinese medicine, will usher in great development According to the data reality, the Chinese pharmaceutical industry will maintain rapid development for a long time Last year, the output value of the Chinese pharmaceutical market was about 110 billion US dollars, becoming the seventh largest market in the world The market expects that by 2020, the output value of China's pharmaceutical market will exceed 200 billion US dollars, becoming the second largest pharmaceutical market after the United States In addition, Jinhua Qinggan, the first Chinese medicine against influenza a developed by the company and with all intellectual property rights, has been successfully launched, which has added wings to the company's development On May 10, Beijing Yushengtang Pharmaceutical Group announced to sign a memorandum of understanding with Nippon pharmaceutical Beijing Yushengtang Pharmaceutical Group plans to acquire 70% of the equity interests of Nippon pharmaceutical through its wholly-owned subsidiary The two sides plan to sign a definitive agreement on or before July 15, 2010 This is the first breakthrough in the acquisition of Japanese pharmaceutical enterprises by Chinese pharmaceutical enterprises, which also means that China and Japan will start a new era of complementary advantages and strong combination in the field of traditional Chinese medicine, and also marks the first key step in the internationalization process of Beijing Yushengtang For this acquisition, market participants believe that after the acquisition, the company will, through Japan's international leading experience in the analysis of effective ingredients of traditional Chinese medicine, production management, quality management, as well as its mature channel and market development experience in the global market, carry out the second product development of "Jinhua Qinggan" and other new achievements of Chinese medicine in the future for Japan and the international market Development and production, and quickly to the existing Japanese nearly 1000 sales outlets and global markets In addition, the company will expand the fast-growing Greater China market through the influence and mature channels of Beijing Yushengtang in the Chinese and Chinese markets through the leading technologies and products of Japanese pharmaceutical in the fields of "Hanfang", botanical medicine and natural health care products Among them, high-end functional health care products, such as natural enzymes, which are popular in Japan in recent years and are made by natural fermentation of nearly 100 kinds of plants at low temperature, will be included Beijing Yushengtang will also take advantage of Japanese pharmaceutical's long-term accumulation of traditional Chinese medicine, plant medicine planting, technology of active ingredient extraction, as well as talents and partner resources to carry out in-depth international cooperation in large-scale industrialized planting of traditional Chinese medicine and other medicinal plants and the establishment of an internationally leading active ingredient extraction factory, so as to expand the potential of global medicinal plants and extraction Property market "Nippon pharmaceutical has more than 60 years of experience in the production of Chinese pharmaceutical in Japan, and is the top Chinese pharmaceutical manufacturer in Japan Our cooperation is a win-win situation for both sides We also plan to produce "Jinhua Qinggan" in Japan through Japan's mature, internationally recognized, production and quality system, and promote it to the global market through Japan's mature channels "The person in charge of Beijing Yushengtang told the author that Japan Pharmaceutical has a complete R & D, planting, extraction and production technology team in the field of Chinese medicine, which produces more than 150 kinds of drugs, herbal medicines and health care products, and distributes them to pharmacies and pharmacies across Japan If the acquisition of Japanese pharmaceutical is to make the company go global, the recognition and brand effect of the company in China are gradually going deep into the people, especially the influenza A H1N1, which makes Beijing Yushengtang and its product "Jinhua Qinggan" become a wonderful Chinese medicine to prevent and treat influenza When it comes to this major breakthrough in the history of traditional Chinese medicine, we have to mention the outbreak of influenza A (H1N1) which began last March Since the first case of swine influenza virus was found in Mexico in March last year, it has spread rapidly to the world, and evolved into another serious global epidemic after the SARS outbreak in 2003 According to the World Health Organization, H1N1 is a new influenza virus, and accurate assessment of death and mortality is likely to occur one to two years after the peak of the influenza pandemic As of the end of last year, who announced that 390000 cases of influenza A had been confirmed worldwide, with at least 12220 deaths At the beginning, when oseltamivir (i.e Tamiflu), an expensive western medicine product, was needed to resist the H1N1 virus, Chinese and Western medicine experts, scientific research institutions and medical institutions jointly carried out drug screening and medical research on traditional Chinese medicine for the prevention and treatment of H1N1 influenza A, and "Jinhua Qinggan", one of the top ten news events in the mainland health sector in 2009, was in this context Developed successfully Chinese medicine played an active role in 2009 when the influenza A (H1N1) epidemic spread rapidly in the world According to incomplete statistics, nearly 2 / 3 of patients with H1N1 have been treated with traditional Chinese medicine or integrated traditional and Western medicine, and "Jinhua Qinggan" preparation has achieved good clinical effect Recently, at the Symposium and press conference on traditional Chinese medicine on "millennium old prescriptions: century new drugs patent new drugs' Jinhua Qinggan 'efficacy and application" organized by Beijing Yushengtang Pharmaceutical Group, the research and development team of "Jinhua Qinggan" from Beijing, famous experts in the field of traditional Chinese medicine and people in Hong Kong's medical and health circles discussed the research and development, efficacy and response of "Jinhua Qinggan" We will conduct extensive and in-depth exchanges on various topics, such as the prospect, the development trend of global influenza A (H1N1) and all kinds of influenza, as well as the characteristics and advantages of traditional Chinese medicine in the prevention and treatment of influenza There is no limit to the market potential of nugget Chinese medicine For the industry where the company is located, the market potential has not been really explored In April last year, the state issued several opinions on supporting and promoting the development of traditional Chinese medicine, in which it was mentioned that the central government allocated a total of 4.7 billion yuan of special funds for traditional Chinese medicine in the whole year, which was the most invested year since the founding of new China, ushering in a rare strategic opportunity for the development of traditional Chinese medicine In fact, the status of traditional Chinese medicine in the world has been constantly improved in recent years, and many drugs can successfully experience "going global" As of 2008, the total sales volume of the global pharmaceutical market was US $740 billion, and the compound growth rate from 2000 to 2008 was 16%, far higher than the global average level and the growth rate of China's GDP From 1997 to 2007, the annual growth rate of the total output value of traditional Chinese medicine industry was 21%, and by the end of 2007 It reached 177.2 million yuan, accounting for about 26% of the total output value of the pharmaceutical industry, surpassing other developed countries And the cold medicine involved by the company is a vast market space, even called "fast consumer goods" in the pharmaceutical field In China alone, more than one billion people suffer from various types of cold every year Most patients need to take medicine or see a doctor The number of the world is billions But in China, the market is severely fragmented, and the highest market score is no more than 2% There are many kinds of cold medicines in the global market, which are almost invisible to the market winners The main reason is that the homogenization of this kind of products is very serious Western medicine is mainly anti allergy (leading to drowsiness), fever reduction, headache relief and other symptoms, and most of them are only temporary relief symptoms, and the efficacy is not very prominent Most of the western medicine cold medicines in China are added with anti allergy or antipyretic chemical components However, most of the traditional Chinese medicine preparations are the so-called "general medicine" which has been used for decades or even hundreds of years, or the "change soup without changing medicine" preparations to improve the field of cold medicine for many years, there are few substantive innovations This provides a good market opportunity for the newly developed and effective pure traditional Chinese medicine "Jinhua Qinggan" As one of the oldest brands in the field of traditional Chinese medicine, Yushengtang has long been committed to the inheritance and dissemination of traditional Chinese medicine culture The Museum of traditional Chinese medicine of Yushengtang has a rich collection and profound foundation, which has become a symbolic cultural asset in the field of traditional Chinese medicine It actively participates in the cultural dissemination activities of traditional Chinese medicine and effectively expands the industry of traditional Chinese medicine Yushengtang has established a very good relationship with the Chinese government and traditional Chinese medicine industry This creates favorable conditions for the further expansion of the brand influence of Yushengtang As a Hong Kong listed company, Beijing Yushengtang Pharmaceutical Group has a stable, efficient and multi-channel financing platform Through the recent two fund-raising, the company has obtained more than 700 million Hong Kong dollars in development funds In addition to the original funds of listed companies, the cash reserve has exceeded 1 billion Hong Kong dollars, creating a very superior capital base for the rapid development of enterprises According to Mr Bai Jianjiang, executive director of Beijing Yushengtang Pharmaceutical Group Co., Ltd and President of Beijing Yushengtang national pharmaceutical Holding Co., Ltd., with the rapid progress of "Jinhua Qinggan" applying for the national new drug approval number, the date of obtaining the new drug certificate is also approaching, and the company has begun to actively prepare for large-scale market expansion He pointed out that in the future, the company will speed up the production process transformation to meet the potential market demand for "Jinhua Qinggan" granular products; secondly, it will actively establish and expand drug sales and market channels, and make efforts in medical institutions, drug wholesale and retail, and government reserves; in addition, the company will also enter the upstream traditional Chinese medicine raw material planting and processing fields, and establish "Jinhua Qinggan" granular products Qinggan "is the base for planting and component extraction of raw materials to ensure the quality acquisition and effective cost control of raw materials; in addition, the company will make strong planning and preparation for market promotion and strengthen the construction of technology, operation and management team According to Bai Jianjiang, these measures will build a solid foundation for the sustained and rapid growth of the market of "Jinhua Qinggan" In addition, Bai Jianjiang also revealed that the company intends to promote the nationwide replication of Beijing model in the early stage, that is, while focusing on ensuring the government's drug reserves, strive to be included in the local medical insurance as soon as possible, and sell in the form of hospital preparations At present, 6 or 7 provinces have actively contacted with the company The company's goal is to establish a leading position in the cold medicine market from China to the world with "Jinhua Qinggan" as the core product Analysts pointed out that "Jinhua Qinggan" has obvious cost performance advantages, and Yushengtang pharmaceutical has a promising market prospect First, "Jinhua Qinggan" has no side effects, which is its advantage Second, compared with the traditional treatment, its comprehensive treatment features greatly reduce the use rate of antibiotics, thus greatly reducing the cost of comprehensive treatment The statistical average is about one third of the traditional western medicine influenza treatment Third, "Jinhua Qinggan" is convenient and easy to use, which is suitable for early intervention treatment of cold, so as to greatly shorten the course of treatment In the next few months, with the approval of new drug certificate completed, the company will be able to obtain approval and gradually start to promote "Jinhua Qinggan" to the public in the form of over-the-counter drugs According to statistics, more than one billion people in China need cold medicine at least once a year Industry insiders predict that in the future, "Jinhua Qinggan" will have a chance to break through 40 million boxes with its breakthrough annual sales volume In addition, the industry also pointed out that