Another well-known pharmaceutical company announced the cancellation of its subsidiary!

On February 16, Buchang Pharmaceutical issued an announcement stating that, based on the current actual operating conditions and follow-up business development plans, the company decided to optimize resource allocation and organizational structure, reduce management costs, and improve operational management efficiency.
Xin Shunfa was cancelled
.
It is understood that Zhongxin Shunfa was established on September 18, 2021 with a registered capital of 6.
8 million yuan, and its business scope includes medical research and experimental development
.
The company is wholly-owned by Buchang Pharmaceutical
.
Since the cancellation does not involve related party transactions and does not constitute a major asset reorganization as stipulated in the "Administrative Measures for Major Asset Restructuring of Listed Companies", it does not need to be submitted to the board of directors and shareholders' meeting for approval
.
In fact, since the beginning of this year, it is not uncommon for subsidiaries to close down in the pharmaceutical industry
.
On January 12, Daiichi Sankyo announced that it would close all of its South San Francisco-based Plexxikon operations, which will operate until the end of March
.
According to the data, Plexxikon was established in 2001 and is a subsidiary acquired by Daiichi Sankyo at a price of US$935 million in 2011.
It has two marketed anticancer drugs and 6 drugs that have already started clinical trials
.
It is reported that the purpose of Daiichi Sankyo’s adjustment and closure of the Plexxikon business is to maximize the concentration of resources in the development of three major ADC products
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It is worth noting that, in addition to closing subsidiaries, there have actually been reports of recent pharmaceutical companies laying off teams and conducting strategic reorganizations
.
For example, some time ago, Spectrum Pharmaceuticals of the United States announced a strategic restructuring
.
According to the restructuring, the company will lay off 30% of its workforce, prioritize its late-stage product opportunities, namely poziotinib and ROLonTIS (eflapegrastim), cancel work on its early-stage clinical development programs FIT Program (IGN 002) and IL-12, and will concentrate resources while substantially reducing the footprint of its selected factories
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In addition, Sanofi executives also stated in the recent quarterly investor conference call that it will continue to implement the layoff plan in 2022, and it is expected to lay off 6,000 jobs globally throughout the year
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The purpose is to adjust the R&D pipeline and embrace digital reform.
Part of the reasons for the layoffs also include the planned spin-off of EUROAPI (API company)
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Industry analysts believe that behind the reduction of these pharmaceutical companies, they are all in order to make the corporate strategy more focused and develop better
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Therefore, in recent years, a large number of pharmaceutical companies have been accelerating reform and development by selling shares, subsidiaries, and divesting core businesses
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In this regard, the industry expects that in the context of the rapid iteration of the pharmaceutical industry, bankruptcy, cancellation and sales of enterprises will become the norm
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In order to make the corporate strategy more focused, more and more companies will sell their assets that do not conform to their own strategic development in the future, so as to focus on the company's main business development
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It is worth noting that for pharmaceutical companies, this also means that the competition in the pharmaceutical market is destined to only become more and more intense in the future, and companies can only have long-term competitiveness in the pharmaceutical arena with both internal and external training
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Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
.