During the year, there have been more than 200 mergers and acquisitions in the pharmaceutical industry, involving a number of Chinese medicine enterprises

【Pharmaceutical Network Industry News】This year, under the acceleration of changes in the pharmaceutical market, pharmaceutical acquisitions and other actions are frequent
.
According to iFinD data, as of September 29, A-share listed pharmaceutical and biological companies have issued a total of 235 M&A announcements (excluding failure cases), and more than 70% of the announcements announced that the M&A direction is horizontal M&A
.
Judging from the subdivision of the pharmaceutical companies that initiated mergers and acquisitions, there are many Chinese medicine companies
.
For example, on the evening of September 25, Longshen Rongfa issued a major asset purchase plan (draft), and the company intends to acquire 70% of the equity of Puan Pharmaceutical held by the controlling shareholders Gansu Pharmaceutical Group and Gansu Nongken Group by paying cash, with a total consideration of 326 million yuan
.
Gansu Pharmaceutical Group is the controlling shareholder of the company, and currently holds 29.
93% of the equity of Longshen Rongfa and 49% of the equity of Puan Pharmaceutical, responsible for the actual control
of the two pharmaceutical production entities.
The products mainly produced by Puan Pharmaceutical have competition with the
company.
According to the data, Longshen Rongfa is an enterprise
integrating new drug research and development, traditional Chinese medicine processing and production and operation.
After the completion of this restructuring, Puan Pharmaceutical will become a holding subsidiary of the listed company, which will completely solve the problem
of competition between Puan Pharmaceutical and Longshen Rongfa.
At the same time, the acquisition will also help improve the company's financial position and enhance sustainable profitability
.
Recently, China Resources Sanjiu disclosed the progress of the merger and acquisition of Kunpharm Group, and the current integration work of Kunpharm is advancing in an orderly manner according to the timetable, hoping to complete the merger and acquisition
before the end of this year.
Previously, CR Sanjiu had issued an announcement that it intends to acquire a total of 212 million shares of Kunpharm Group for 2.
9 billion yuan, accounting for 28% of the total number of issued shares of Kunpharm Group, and Kunpharm Group will become a holding subsidiary
of CR Sanjiu.
CR Sanjiu said that the merger of Kunyao will help CR Sanjiu further consolidate its position in the CHC industry and also help to improve the company's ranking
in the field of traditional Chinese medicine.
Earlier, Yunnan Baiyao spent HK$1.
3 billion to acquire Wanlong Holdings across borders, saying that "through the tender offer, it will enhance the internationalization level of Yunnan Baiyao's business, while taking advantage of Wanlong Holdings' advantages in product trading and sales channels"
.
The main business of Bandung Holdings Group is investment holding, which is engaged in the business of money lending, goods and commodities and the trading of cannabidiol (CBD) extracts
.
Previously, Wanlong Holdings had entered into a R&D strategic cooperation agreement with Yunnan Research Institute of Yunnan Baiyao Holdings to focus on the research and development of industrial hemp-related products and leverage the resource advantages of both parties to promote long-term cooperation
.
From the perspective of the frequent initiation of acquisitions by Chinese medicine enterprises, it is mainly to solve the problem of competition in the same industry, consolidate the company's industry position, and
improve the level of business.
In recent years, the state has introduced a series of favorable policies to provide fertile soil for the development of traditional Chinese medicine, and the market prospect of the traditional Chinese medicine industry is broad
.
The 14th Five-Year Plan "Development Plan suggests that TCM has good prospects for the future, as well as the improvement
of national health awareness.
" According to data from Intranet, from 2018 to 2021, the sales scale of proprietary Chinese medicines in physical pharmacies in China's cities has increased from 111.
5 billion yuan to 111.
6 billion yuan.

The industry believes that with the aging of the population, the enhancement of residents' health awareness, the increase in the rigid demand for drugs and the support of relevant policies, China's traditional Chinese medicine industry will continue to grow in
the future.
It is worth mentioning that the collection is the "sword of Damosli" hanging over the head of Chinese medicine enterprises, and recently the National Joint Procurement Office of Proprietary Chinese Medicines was officially established and organized the national collection of proprietary Chinese medicines, which is considered by the industry to be the comprehensive opening
of the collection of proprietary Chinese medicines.
Many securities companies said that in the long run, they are more optimistic about the head enterprises
that attach importance to research and development, brand extension, channel expansion and strong pricing power.
Disclaimer: Under no circumstances does the information herein or the opinions expressed in this article constitute investment advice
to any person.