China Resources Sanjiu and Kunyao Group!

On May 5, Kunpharm Group announced the suspension of trading, which triggered a lot of speculation in the capital mark.

Three days later, on the evening of May 8, China Resources Sanjiu, a listed company under China Resources, disclosed the restructuring plan, showing that the company planned to spend 902 billion yuan to purchase 28% of the shares of Kunming Pharmaceutical Group, and the controlling shareholder of Kunming Pharmaceutical Group will be changed from Huali Group to China Resources 3 After the transaction is completed, Kunpharm Group will become a holding subsidiary of the listed compa.

For the capital market, since both China Resources Sanjiu and Kunming Pharmaceutical Group are listed companies with A shares, the merger and reorganization of “A Eats A” has attracted a lot of attention from investors, which also means that the capital of “Huali Department” will withdraw from Kunmi.

For the pharmaceutical market, the impact is even more profou.

As we all know, China Resources Sanjiu and Kunyao Group occupy an absolute market position in the field of "Xuesaitong" related products, especially the soft capsule dosage form, like "Coca-Cola" and "Pepsi-Cola", the only two competitors in recent years in the segmented field Hand-to-hand comb.

With the continuous deepening of the reform of "three medical linkages", the normalization of centralized procurement, the promotion of DRG/DIP pilot projects, the deepening of medical insurance cost control policies, and the chain reaction of policies such as auxiliary drugs, clinical restrictions, and centralized recruitment and procurement, the traditional Chinese medicine market has suffered an unprecedented te.

After 2021, Hubei, Guangdong, Shandong and other places have successively led the implementation of the centralized procurement of Chinese patent medicines, and large varieties of traditional Chinese medicines represented by Xuesaitong/Xueshuantong, injections, freeze-dried powders, dripping pills, tablets, soft capsules, e.

The downward trend in the subdivision is clearly visible, and there is never a safe haven from brutal competiti.

Under the heavy pressure of centralized procurement of proprietary Chinese medicines, facing the increasingly fierce market impact in the future, the terminals in and out of the hospital will be reshuffl.

And the controlling shareholder Huali Group, whether it is Wang Licheng, who is an instrument and instrument, or Wang Siyang, who is now a "second-generation successor", has achieved success in the field of medicine in the past, but now it has vanish.

Twenty years of Hedong, twenty years of Hexi

The battle for the upstream industry chain of traditional Chinese medicine

As the protagonist of this transaction, the looming "Huali Department" behind Kunpharm Group was once the beneficiary of the barbaric growth era of the traditional Chinese medicine indust.

Huali Group was founded in 197 At first, it was only a merger of three handicraft cooperatives in Yuhang Town that produced bamboo utensils, umbrellas and pen tube broo.

In the 1990s, Huali Group entered the securities market through a backdoor approach by acquiring the equity of "Chongqing Chuanyi", and changed the company's name to "Huali Holding.

The traditional Chinese medicine market has a low degree of innovation, and more reflects the attributes of agricultural and sideline produc.

In 2000, Wang Licheng decided to enter the field of artemisinin, which had great potential but little attention at that ti.

After completing the upstream "staking", Wang Licheng, who is good at capital operation, further extended the industrial territory by acquiring or participating in controlling artemisinin extraction pharmaceutical factories, distributors and other companies; in September 2002, Huali Group spent nearly 170 million yuan In 2004, Huali Group finally took a 29% stake in Kunming Pharmaceutical and became the largest sharehold.

In 2015, Tu Youyou won the Nobel Prize, which attracted the A-share mark.

For Wang Licheng, who is operating with Shunian Capital, he has undoubtedly found a good opportunity to expand the Kunming Pharmaceutical Gro.

In September 2016, Kunpharm Group and the Institute of Chinese Materia Medica, Academy of Chinese Medical Sciences signed the "New Indication of Dihydroartemisinin Tablets - Lupus Erythematosus Project Transfer Contrac.

The listed company invested 70 million yuan to purchase the Tu Youyou team held by .

Relevant patents and clinical approvals obtained from the preclinical research of the lupus erythematosus R&D project, a new indication for dihydroartemisinin tablets develop.

It can be seen that in the past two decades, the success of Wang Licheng and the Kunming Pharmaceutical Group have been closely tied to the upstream and downstream of artemisin.

The development of the company was very happy, and Wang Licheng began to push his son to the fro.

As a successful work created by oneself, Kunyao Group is undoubtedly the most suitable sta.

In March 2016, Wang Siyang, who was only 29 years old, took over the Kunpharm Group as chairm.

However, "Twenty years in Hedong and twenty years in Hexi", since 2015, in the face of the structural changes in the entire Chinese pharmaceutical industry, the supervision has gradually tightened, and the good days when the Chinese medicine market can control the upstream can "lie down and win" have begun to appe.

Hidden worries, the days of savage growth are gone forev.

With the release of the "Opinions on Deepening the Reform of the Review and Approval System and Encouraging the Innovation of Drugs and Medical Devices", in order to further strengthen the supervision of the safety and effectiveness of injections, whether it is post-marketing evaluation, full-process supervision, unannounced inspection, and drug supervision efforts are being comprehensively strengthen.

In April 2018, the State Drug Administration issued the "Notice on the suspected illegal and illegal production of drugs by three companies including Shandong Linqing Huawei Pharmaceutical .

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7 of 2018)", Kun Pharmaceutical Group changed the production process of injections without authorization The parameter is "on the list", and the GMP certificate is also withdra.

The leading injection enterprises have encountered quality control and management problems in the production of injections, causing an uproar in the indust.

This is undoubtedly a heavy blow to Wang Siyang, who has just taken over the Kunpharm Group for two yea.

What is even more serious is that since the second half of 2017, various provinces have successively issued documents related to key monitoring dru.

Antibiotics, injections, especially traditional Chinese medicine injections, auxiliary drugs, e.

have become the key monitoring objec.

All fell sharp.

In fact, since 2015, Xuesaitong for injection has been listed as a key monitoring drug in Sichuan, Jiangsu, Henan, Qinghai, Shandong and other provinces for more than 30 tim.

The sudden change, even Wang Siyang could not turn the ti.

As a result, the sales of the two major traditional Chinese medicine injection products of Kunming Pharmaceutical Group experienced a decline in sales or a slowdown in growth ra.

The sales volume of Xuesaitong for injection in 2018 was 68,276,900, a decrease of 8,566,800 compared with 201 The gastrodin injection basically maintained growth, but the compound annual growth rate was less than 8%, which was different from the pa.

At the same time, in the face of the fact that the centralized procurement of proprietary Chinese medicines tends to be implemented, in recent years, the Kunming Pharmaceutical Group is trying to find a transformation path, and the out-of-hospital market has improved significant.

However, as the chairman of the board, Wang Siyang has personally handed over the mountains and rivers that his father has laid down in the past 20 yea.

Coveted Panax notoginseng natural resources

China Resources Sanjiu treads the industry chain?

Similar to Huali Group opening up the industry chain from top to bottom, "Yunsanqi", as an authentic medicinal material, competes for the right to speak in the industry chain, and China Resources Sanjiu is also imitating the former "successors" in the mark.

The last time I made a move was back five years a.

At that time, China Resources Sanjiu was trying to further tap the potential of the cardiovascular and cerebrovascular sect.

However, since the product pipeline at that time was dominated by injections, supplementing oral dosage forms became the company's top priori.

On July 27, 2016, China Resources Sanjiu announced that it planned to acquire 100% equity of Shenghuo Pharmaceutical held by 6 companies including Lanshi International Pharmaceutical Investment .

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for a total price of 89 billion yu.

Shenghuo Pharmaceutical, like Kunyao Group, is also a local enterprise in Yunnan that mainly produces and sells oral cardiovascular and cerebrovascular dru.

It has a certain foundation in chronic disease manageme.

It is the competitor of Kunming Pharmaceutical Group in the Panax notoginseng industry cha.

This "state-owned" acquisition is undoubtedly an irresistible temptation for the torch pharmaceutical industry, which has just experienced the delisting of the US stock mark.

At the same time, for China Resources Sanjiu, "acquiring Shenghuo Pharmaceutical, cutting into the Sanqi industry chain, and further developing a series of products for big health and chronic diseas.

" The original intention is good, the purpose is clear, and the logic is rigoro.

However, this act caused huge controversy and doubts at that ti.

On the one hand, the acquisition announcement shows that Shenghuo Pharmaceutical's 2015 revenue and operating net profit were 465 million yuan and 953 million yuan respectively, but its net operating cash flow for the year was only 53 million yuan, far less than the net profit val.

At that time, the voice of "high premium acquisition" in the capital market came one after anoth.

On the other hand, after Shenghuo Pharmaceutical was included in the scope of China Resources Sanjiu’s consolidated financial statements, the annual reports of China Resources Sanjiu from 2016 to 2019 did not disclose the operating conditions of Shenghuo Pharmaceutic.

It was not until 2020 that China Resources 39 Annual Report simply disclosed the operating data of Shenghuo Pharmaceutical: revenue and net profit were 613 million yuan and 181 million yuan, respectively, compared with 2015 growth rates of 383% and 869%, slow inco.

Growth failed to satisfy investo.

The wheels of history are rolling forward, but the biggest market test in the field of proprietary Chinese medicines has already begun to br.

In July 2020, the relevant departments of the National Medical Security Administration held a symposium to listen to expert opinions and suggestions on the centralized procurement of biological products (including insulin) and proprietary Chinese medicin.

Then in September, the "National Medical Security Administration's Reply to Recommendation .

5936 of the Third Session of the 13th National People's Congress" was releas.

The National Medical Insurance Administration stated that it would further study and explore the unreviewed drugs and those that do not currently have consistent evaluation standar.

Drugs, such as biological products and proprietary Chinese medicines, will be purchased in a centralized mann.

At first, the whole industry had relatively optimistic expectations for the progress of "centralized procurement of proprietary Chinese medicine.

On the one hand, after several rounds of national centralized procurement in the field of chemical drugs, the pharmaceutical market has seen the fierce competition of price wa.

However, the compatibility and processing of Chinese patent medicines are complicated, and the quality of raw materials is difficult to uni.

The market believes that "centralized procurement of Chinese patent medicines" It will not be implemented soon; on the other hand, although Qinghai Province, Jinhua in Zhejiang, Puyang in Henan and other places continue to try centralized procurement of Chinese patent medicines, the procurement rules for the most distinctive "exclusive varieties" of Chinese patent medicines are often mild.

However, at the end of 2021, the "centralized procurement of Chinese patent medicine alliance in 19 provinces in Hubei" has let the industry breathe a sigh of reli.

On December 27, the centralized procurement results of the 19-province Chinese patent medicine alliance in Hubei were officially released: a total of 182 products from 157 companies participated in the quotation, with a procurement scale of nearly 10 billion yu.

97 companies and 111 products were selected, with a selection rate of 6
The average price dropped by 427%, and the largest drop was 86
The price of a single piece/pill/needle of some medicines is as low as 08 yuan/pie.

What is even more tragic is that, as an important participant in Hubei centralized procurement, China Resources Sanjiu has four varieties of Shenmai injection, Shengmai injection, Shuxuening injection and Xuesaitong soft capsule to participate in the quotati.

In the end, only Shengmai injection was selected, and the price of the selection was reduced by 41

This means that in 19 provinces and more than 24,000 medical institutions across the country, China Resources Sanjiu's Xuesaitong Soft Capsules (Lixuanwang) may face a cliff-like collapse in 202

In the 2021 annual report released by the company, for this centralized procurement in Hubei, China Resources Sanjiu also listed it as one of the "risk factors affecting the company's future developmen.

In terms of oral dosage forms of Xuesaitong, although the oral products of Xuesaitong such as Yunnan Weihe, Longtian Pharmaceutical, Yunnan Jinbuhuan, Harbin Zhenbao Pharmaceutical, Chongqing Kerui, and Shenwei Pharmaceutical are competing, the huge product group owned by Kunyao Group has always It has always been China Resources Sanjiu's biggest competit.

In Hubei centralized collection, Kunyao Group's Xuesaitong (freeze-dried) for injection and Xuesaitong dropping pills were both successfully select.

If a "price war" is unavoidable, eliminating competitors is the best choice, and capital mergers and acquisitions are of course an important strategy for "turning competitors into partner.

Whether it was the acquisition of Shenghuo Pharmaceutical for 89 billion yuan five years ago, or the holding of Kunming Pharmaceutical Group for 902 billion yuan to open up the upstream and downstream industrial chain of Sanqi, China Resources Sanjiu is working hard to expand the "circle of friend.

Embrace the "thighs" of state-owned assets

Go to the out-of-hospital market to find your way

On this side, China Resources Sanjiu opened its arms to win over its friends, and on the other side, Kunpharm Group has already "belonged to i.

The "price war" caused by the centralized procurement of Chinese patent medicines, Kunpharm Group seems to have achieved phased results in the centralized procurement of Hubei, but it is also silently under the huge pressure of market operation in the hospit.

The pressure comes from the increasingly clear rules of centralized procureme.

The "Opinions of the General Office of the State Council on Promoting the Normalization and Institutionalization of the Centralized and Volume-Based Procurement of Drugs" (Guobanfa [2021] .

2) clearly stated that "explore the merger of different generic drugs with similar indications or functions to carry out centralized developme.

Purchasing with volum.

Taking Hubei Jicai as an example, after being classified and grouped according to the functions and indications, ingredients, and route of administration, Xuesaitong and Xueshuitong both play the role of promoting blood circulation and removing blood stas.

Tablets, dropping pills, and soft capsules are in the same gro.

It means that the number of selected entrepreneurs will increase, and the competition is bound to intensi.

The industry generally expects that this idea of ​​centralized procurement may continue in the subsequent provincial and even national centralized procureme.

Just before the Guangdong Provincial Drug Trading Center announced that the Guangdong Alliance Qingkailing and other Chinese patent medicines were to be selected and selected in a centralized manner and the results were select.

The overall average decline in the bid-winning varieties according to the highest declared price has reached 5
The "price war" between Kunpharm Group and China Resources Sanjiu continu.

In the face of the increasingly severe market situation in the hospital, the financial pressure of Kunming Pharmaceutical Group has begun to appe.

In the first quarterly report of 2022 disclosed by Kunpharm Group, although the fist product Kunpharm Xuesaitong series achieved rapid growth, the company's accounts receivable increased to 433 billion yuan, resulting in a year-on-year increase of 6201% in credit impairment losses and a year-on-year increase in net prof.

A decrease of 427%, and the overall performance showed "increase in revenue but not profi.

In addition, the asset-liability ratio of Kunming Pharmaceutical Group has also increased year by year in recent yea.

Data show that since 2017, its asset-liability ratio has been above 40%, of which it will be as high as 445% in 202

Under this circumstance, China Resources Sanjiu and Kunming Pharmaceutical Group, which exclusively own the soft capsule dosage form, will suffer both from their "internal frictio.

Now the state-owned capital has thrown an olive branch, and obtaining a "win-win" will undoubtedly benefit both parties to the outside wor.

In addition, the bigger interests of both parties are still in the out-of-hospital mark.

In July 2018, the "Requirements for Revision of Instructions for Xuesaitong Injection and Xueshuitong Injection" was officially releas.

The policy clearly states that Xuesaitong should be used in medical institutions with rescue conditions; in addition to restricting the use of institutions, this revision also clarifies that children are prohibited from using .

Due to the limited sales of injection products, the production and sales of Xuesaitong for injection of Kunming Pharmaceutical Group in 2021 have dropped by 501% and 397% compared with the same period of the previous ye.

Kunming Pharmaceutical Group must find another w.

On the one hand, the company's key oral products continue to make breakthroughs, driving the rapid increase in category clusters and potential varieties; on the other hand, in retail terminals, the company's category expansion and brand influence are two-pronged, strengthening cooperation with leading retail enterprises, improving the coverage of small and medium-sized chain terminals, and accelerating E-commerce channel layo.

Through brand co-construction and focus on major gold items, Kunpharm Group's sales in the out-of-hospital market have achieved a certain turnarou.

In the first quarterly report, the retail channels of Kunming Xuesaitong soft capsules increased by 712% year-on-year, and the revenue of Kunming Traditional Chinese Medicine increased by 100% year-on-ye.

Among them, Shenling Jianpiwei Granules, Shugan Granules, Xiangsha Pingwei Granules, Oroyanqing Pills and Jin Core products such as Huaxiaocuo Pills and Qingfei Huatan Pills increased by 137%, 63%, 203%, 493%, 2831% and 429% respectively year-on-ye.

The out-of-hospital market is also in line with China Resources Sanjiu's development strate.

Whether it is to jointly build the "Kun TCM 1381" and "Kun TCM" brands, or to promote the Sanqi industry chain, China Resources Sanjiu can take advantage of its own resource advantages in the OTC fie.

In a media interview in 2021, Zhong Xianggang, president of Kunming Pharmaceutical Group, once said that in the long run, the development of traditional Chinese medicine has favorable policies, but in the short term, it must face iteration and reshuff.

"We have to live first and find the direction of transformati.

"

"The leftover is king" is of course also a victo.

If you want to survive, you must plan ahead before a bigger storm com.

Fleeing to the market outside the hospital, this time it is Xue Saitong, but it will never be the la.

In the face of the cold winter of the capital market, investors always believe in stori.

The market opened on MayAs of press time, Kunming Pharmaceutical Group's daily limit closed the boa.