Another multinational pharmaceutical company sold its factories in China to rearrange its business in the Chinese market

【Pharmaceutical Network Industry Dynamics】 In recent years, multinational pharmaceutical companies are generally facing the "patent cliff" of original research drugs, and in this context, multinational pharmaceutical companies have also become very frequent
in selling business in China.
It is reported that another multinational pharmaceutical company sold its factory
in China.
Recently, Jiuzhou Pharmaceutical announced that it has decided to change part of the funds raised by the fundraising project for the purpose of acquiring 100% of the equity of Zhongshan Preparation Factory (hereinafter referred to as "Shandos Zhongshan Pharmaceutical Factory") owned by Sandoz (China) and increasing its capital
.
According to the announcement, the target of Jiuzhou Pharmaceutical's proposed acquisition is a new subsidiary of Sandoz (China), which
integrates the manufacturing assets, production and management teams of the spun off preparations into the Zhongshan Preparation Factory.
Sandoz is a member
of the Swiss multinational Novartis Group.
It is reported that after the completion of the acquisition of Sandoz Zhongshan Pharmaceutical Factory, Jiuzhou Pharmaceutical Co.
, Ltd.
has the remaining funds to increase the capital of Santex Zhongshan Pharmaceutical Factory for the implementation of the CDMO (Pharmaceutical Commercial Production Outsourcing) preparation transformation and expansion project of Santex Zhongshan Pharmaceutical Factory
.
According to the combing, in addition to the above multinational pharmaceutical companies selling factories in China, since this year, a number of multinational pharmaceutical companies have also sold their business
in China.
For example, the First Sangong (China) has signed an equity transfer agreement with Chongqing Yaoyou Pharmaceutical Co.
, Ltd.
, and posted relevant transfer information on its WeChat, showing that the first three parties (China) transferred to Chongqing Yaoyou the production and sales rights of colapitor preparations in mainland China and all the equity of the production company producing the preparation, and is expected to complete the transfer
at the end of August this year.
Analysts said that in the context of changes in the domestic pharmaceutical environment, the strategies of major multinational pharmaceutical companies in China are consistent with the transformation ideas of the first three communists, as well as Roche, Lilly, GSK, Takeda, Pfizer and so on
.
In addition, according to statistics, in 2021, many multinational pharmaceutical companies such as Pfizer, Merck, Novartis, GSK, Roche and so on will either split and divest their non-core businesses, or sell them, or authorize them externally, or even shut down directly
.
GSK announced that it will focus on supporting the development of the vaccine and specialty drugs business by divesting non-priority products; Roche also announced that it will stop the marketing of mature products such as Rochefen and focus resources on innovative drugs; Merck has also stripped off women's health, biosimilars and some mature medicines
.
The above-mentioned multinational pharmaceutical companies have made decisions
to divest related businesses and focus on innovative drugs after the expiration of their product patents.
In recent years, multinational pharmaceutical companies are generally facing the "patent cliff" of original research drugs, and with the advancement of collection, the "excess profit margin" of multinational pharmaceutical companies has been gradually compressed
.
"After the purchase of quantity, multinational pharmaceutical companies with original research drugs have to rearrange their business
in the Chinese market in the face of the impact of the price of a large number of generic drugs that have passed the consistency evaluation.
" Some analysts said
so.
However, some people pointed out that compared with the sale of foreign assets by multinational pharmaceutical companies, many domestic pharmaceutical companies are in love with the acquisition of overseas companies, such as in addition to the above-mentioned Jiuzhou Pharmaceutical, Kanglong Chemical has acquired Aesica Company (API commercialization base) in Cramlington, the United States Coventry production base (API commercialization base), etc.
in 2022 to enhance the company's overall strength
in small molecule CDMO and drug safety evaluation 。 China Biopharma also announced in June this year that the Company, its wholly-owned subsidiary invoX Pharma Limited and invoX's wholly-owned subsidiary Fennec Acquisition Incorporated entered into a merger agreement and plan with F-star Therapeutics, Inc.
to spend more than US$160 million to acquire F-star Therapeutics to further complement the company's antibody drug pipeline
。 Kailai Ying also announced in February this year that it agreed to acquire Snapdragon Chemistry, Inc.
and others
in the United States for about $57.
94 million.
Disclaimer: Under no circumstances does the information herein or the opinions expressed in this article constitute investment advice
to any person.