Chlorphenamine bulk drug giants sell themselves! Erkang pharmaceutical becomes an oligarch!

On the evening of September 28, Erkang pharmaceutical issued the notice on signing the agreement of intent for share transfer (hereinafter referred to as the notice), and Hunan Erkang Pharmaceutical Co., Ltd signed the agreement of intent for share transfer with Henan Jiushi Pharmaceutical Co., Ltd and Shi Mingyun, intending to transfer not less than 51% of Jiushi pharmaceutical shares held by Shi Mingyun through share transfer Copies As we all know, as the largest manufacturer of Chlorphenamine Maleate API in China, Henan Jiushi has a market share of more than 80% In the event of "price rise of Chlorphenamine API" which was widely concerned by the media not long ago, Henan Jiushi was pushed to the public opinion Before that, the business relationship between Henan Jiushi and Erkang pharmaceutical, as well as the operation of chlorpheniramine API, has been widely discussed in the industry Once the merger and acquisition news is released, it is both unexpected and reasonable It is undeniable that Erkang pharmaceutical, together with Henan Jiushi Pharmaceutical Co., Ltd., will undoubtedly take the strategic intention of dominating the market segment of chlormin According to the announcement, the main business of Jiushi in Henan Province is the production and sale of Chlorphenamine Maleate (also known as "chlorphenamine") and its finished drugs, among which chlorphenamine is mainly used in the production and manufacture of rhinitis, skin and mucous membrane allergy, as well as drugs to relieve cold symptoms such as tears, sneezing and runny nose The registered capital is 48 million yuan, which is held by eight people including Shi Mingyun, Liu Wei, Yang Jicheng, Zeng Fengjiao, Shi zhengshuai, he Yongcheng, Chen Xishan and Wang Xuanyin Shi Mingyun holds 44.94 million shares, accounting for 93.625%, which is an absolute major shareholder According to the public information, Jiushi Pharmaceutical Co., Ltd has been developing its main business and constantly developing its diversified strategy However, in the course of its expansion, during 2014-2016, Shi Mingyun repeatedly sought loans from others in his own name, with the monthly interest rate dropping from the first 1.9% to 0.3%, and Jiushi of Henan Province has repeatedly provided joint and several liability guarantee for the loans Industrial and commercial information shows that Jiushi, Henan Province, involved in a number of private lending disputes, has been prosecuted by others, and has been listed as dishonest and enforced On March 23, 2017, Huixian municipal Party committee replied to the question of "Mingjun fraud and illegal fund-raising in Henan Jiushi pharmaceutical industry", saying, "Henan Jiushi biopharmaceutical project is located in Huixian industrial cluster, covering an area of 210 mu, with a total investment of 280 million yuan The foundation was laid on February 28, 2012, and the construction was officially started in 2013 Due to capital problems, in 2015, nahui Wealth Investment Management (Shanghai) Co., Ltd was registered in Shanghai to absorb capital in P2P mode, and in Huixian City, local capital was absorbed with high interest in the form of investment and equity, and the principal and interest were suspended in June 2016 " Industrial and commercial information shows that Navitas Wealth Investment Management (Shanghai) Co., Ltd is 70% and 30% respectively held by Navitas financial information services (Shanghai) Co., Ltd and Shi zhengshuai The shareholders of nahui financial information service (Shanghai) Co., Ltd are natural persons Shi Mingyun and Ji Changbo On August 30, 2017, Shi Mingyun was arrested by Huixian Public Security Bureau for illegal fund-raising At present, the non department is trying to use the method of introducing a third-party enterprise to purchase Shi Mingyun's equity in Jiushi pharmaceutical to repay the public's fund-raising Based on the current situation of Jiushi pharmaceutical's operation and management, Shi Mingyun has been unable to effectively perform the daily operation and management responsibilities of Jiushi pharmaceutical due to the judicial proceedings involved In July this year, the phantom of Erkang pharmaceutical emerged Due to the monopoly of raw materials by dealers, the raw materials of Chlorphenamine Maleate (chlorphenamine) rose to 15000 yuan / kg from 260-280 yuan / kg at the end of last year, which is 50 times higher than before This may involve the normal production and sales of the finished drug market with a scale of 100 billion yuan
According to the database of drug regulatory authorities, the drug manufacturers that produce chlorphenamine maleate include Shenyang Xindi Pharmaceutical Co., Ltd., Henan Jiushi Pharmaceutical Co., Ltd., Shanghai Xinhualian Pharmaceutical Co., Ltd., Shanghai Hyundai Hassen (Shangqiu) Pharmaceutical Co., Ltd., while only Shenyang Xindi Pharmaceutical Co., Ltd and Henan Jiushi Pharmaceutical Co., Ltd have obtained GMP certification limited company In addition, according to the notice of the drug regulatory department, due to the violation of the approved production process, material source, batch production record, inspection report and other records and data untrue, all operating and using units are required to immediately stop selling and using the chlorpheniramine API produced by the company in 2017 On August 7, Jiushi, Henan Province, once issued a notice of supply, reminding customers of the 8505 kg inventory of chlorpheniramine APIs Coincidentally, the official website of Erkang pharmaceutical released the information on the supply of Chlorphenamine Maleate (chlorphenamine maleate) API Although the information content clearly confirmed that chlorphenamine maleate API is made in sebolia, India, and when the investors asked about the relationship between the two enterprises, they clearly responded that Henan Jiushi Pharmaceutical Co., Ltd has no relationship with it However, there have been many discussions in the industry The head of the purchasing department of a pharmaceutical enterprise told the reporter that Hunan Erkang and Henan Jiushi have always maintained business contacts, and hinted that "due to the long-term lawsuits of the head of Jiushi's enterprise, Jiushi's API Department actually has close contact with Erkang's managers." In fact, the acquisition also confirmed the intention of Erkang pharmaceutical to officially settle in Jiushi management of Henan Province The announcement shows that: during the transitional period, Erkang pharmaceutical will provide support for the production, operation and management of Jiushi pharmaceutical, including standardizing the basic management, establishing or improving the internal control system and necessary talent support according to the needs of Jiushi pharmaceutical For the merger and acquisition of Erkang pharmaceutical and Henan Jiushi, there is almost one side view in the industry: the market oligopoly pattern of Chlorphenamine Maleate API is forming, and the next market trend, especially the pressure on downstream pharmaceutical enterprises, cannot be underestimated.