From "buy, buy" to "naturalized" listed pharmaceutical companies experienced what?

With the promotion of many pharmaceutical industry policies that encourage innovation, such as consistent evaluation of the quality and efficacy of generic drugs, volume procurement, and medical insurance negotiations, domestic pharmaceutical companies have also begun to control business risks by divesting businesses that are not suitable for the long-term strategy of the enterprise, have no growth potential or affect the overall development of the enterprise, so as to better focus on the main business and control operational risks.another listed company in the year close to the choice to sell assets!On January 6, 2020, Haier Bio, a listed company of Ketson Board, announced that it would sell its 75% stake in Haimei Kangji Biotech Co., Ltd. for 27 million yuan. Some commentators jokingly called it the "first sale" of the board, because this matter is the first transfer of assets of listed companies since the opening of the board.As for the reasons for the sale, Haier Bio said in the announcement, because molecular diagnostic POCT has the characteristics of high technical difficulties, long development and approval cycle, in the formation of stable income and profitability, still need to invest more capital, personnel and management costs, and there is some uncertainty about the development prospects. And this move is to reduce the company's operating risks, better promote the development of the main industry, optimize the layout of the industry.In fact, it's not just Haier that's starting the Slimming project. Just a few days ago, Yuheng Pharmaceuticals, People's Fu Pharmaceuticals, Hengkang Medical and other domestic pharmaceutical companies have issued asset sales announcements. E pharmaceutical managers through the A-share pharmaceutical listed companies issued by the announcement of the statistics found that since the second half of 2019, at least 18 listed companies, including Nanjing Pharmaceuticals, Coronary Biology, Jin domain medicine, including divestiture or sale of assets, business.From the reasons for public disclosure, most enterprises will sell assets due to optimize asset allocation, improve the company's financial situation, and this also shows to a certain extent, with generic drug quality and efficacy consistent evaluation, volume procurement, health insurance negotiations and many other pharmaceutical industry policies to encourage innovation, domestic pharmaceutical companies also began to according to their own development needs, through divestiture is not suitable for the long-term strategy of enterprises, no growth potential or affect the overall development of the business, in order to better focus on the main business, control business risks.Reducing debt and replenishing cash flow are key factors in fact, similar transactions have been on the rise in recent times.On January 2, 2020, Yuheng Pharmaceuticals announced that it had agreed to sell its 100% stake in Ano (China) Pharmaceutical Co., Ltd. to China Resources 39 Pharmaceutical Co., Ltd., and that Atno Pharmaceuticals had completed the registration of industrial and commercial changes after the transfer of equity. Previously, after consultation between the two parties to the transaction, the transfer price of the underlying equity was RMB 1.42 billion.For Yuheng Pharmaceuticals, the sale of Ono Pharmaceuticals is clearly not a piece of business. In 2013, Yuheng Pharmaceuticals acquired a 100% stake in Ano Pharmaceuticals for 420 million yuan, the latter of which has been steadily contributing to the company's profits, the main product is calcium glucosate zinc oral solution. In the first half of 2019, Yuheng Pharmaceuticals' operating income was RMB2,734 million, while the net profit attributable to shareholders of listed companies was RMB208 million, an increase of 7.77 percent and 0.18 percent, respectively, over the same period last year. Ono Pharmaceuticals' operating income for the first half of 2019 was RMB168 million and net profit was RMB 72 million, and Ano Pharmaceuticals' profit impact on The Net Profit of Yuheng Pharmaceuticals reached 35%, second only to Pudd Pharmaceuticals. Pude Pharmaceuticals' operating income for the first half of 2019 was RMB1.16 billion, net profit was RMB 75 million, and the impact on Yuheng Pharmaceutical's net profit was 36%.In this case, the choice to sell may be largely based on the asset-liability ratio, which is currently at a high level. Data show that as of the end of September 2019, the ratio of assets and liabilities of Yuheng Pharmaceuticals has reached 51.23 percent, which is at a high level in the industry. Yu Heng Pharmaceuticals also mentioned in the announcement that the sale of Ano Pharmaceuticals will give priority to the repayment of the company's debt, reduce the ratio of assets and liabilities and financial costs, improve the debt structure, ensure that the company's cash flow is abundant, to cope with operating performance pressure. It is not difficult to guess, under the impact of the internal and external, in order to promote the company's sustained and stable development, Yuheng Pharmaceuticals this move can also be described as "broken arm to live".Uniquely, Hengkang Medical also recently announced that in order to improve the company's cash flow situation, reduce debt, focus on the main business, the company's 100% stake in Sichuan Hengkangyuan Pharmaceutical Co., Ltd., at a transaction price of RMB83.4 million transferred to Chengdu Yali Health Management Co., Ltd. In addition, there are four ring biology, Kangzhi Pharmaceuticals and other listed companies announced the sale of assets.Four Rings Bio announced on December 13, 2019 that its wholly-owned subsidiary Guangxi InterContinental Forestry Investment Co., Ltd. announced the sale of forest assets to the state-owned 60,000 forest farms in Guangxi Zhuang Autonomous Region. The purpose of the sale is to insulate the stock of assets, improve the operational efficiency of assets, improve the company's financial situation. Upon completion of this transaction, approximately 40 million proceeds will be generated.Focus on the main industry into the mainstream trend In addition to Haier Bio, E drug managers note that in order to optimize the asset structure, further integration of resources, focus on the main industry, announced the sale of assets of domestic pharmaceutical companies are not in the minority.On December 31, 2019, Renfu Pharmaceuticals announced that its wholly-owned subsidiary, Fu Zhongxiang Medical Management Co., Ltd., intends to sell its holding of zhongxiang People's Hospital New Hospital Real Estate to Zhongxiang Xingrui Asset Management Co., Ltd. Xingrui assets pay part of the sale price of RMB 670 million, the final settlement amount will be based on the audit results of the final accounts of the project.In the announcement, the company said that since 2018, in order to improve the operational efficiency of assets and anti-risk capabilities, the company firmly implemented the "naturalization" strategy, actively promote business focus and asset optimization, decided to phase out medical services and other competitive advantages or weak synergies in the sub-areas.Public information shows that Zhongxiang City People's Hospital was founded in 1908, is a medical, teaching, scientific research, first aid, rehabilitation, health care in one of the modern three-level hospital. What attracts the layout of fu medicine in the field of medical institutions is the publication of national policies such as "Several Opinions on Promoting the Development of Health Services" and "Several Opinions on Speeding Up the Development of Social Health Care" during the 12th Five-Year Plan period.The state encourages the community to run a doctor, the capital smells the wind, then set off a wave of hospital acquisition. However, some people in the industry said that although many domestic enterprises are buying hospitals, but after the acquisition of hospital brand building, hospital internal management and hospital doctors resource allocation has become a difficult problem in front of the acquisition of enterprises.As a result, there have been few successful cases of pharmaceutical companies operating hospitals. For example, financial results show that Ma Shouldlong achieved a net profit of 103 million yuan in the first half of 2018, down 41.13 percent year-on-year, and its Ma Shouldlong Pharmaceutical Group Chain Hospital Investment Management Co., Ltd. lost 5.5876 million yuan. Since 2018, a number of pharmaceutical companies have started to divest their hospital businesses, mostly because they are inconsistent with the company's long-term development strategy.From Haier bio-exit molecular diagnostic POCT, People's Fu Pharmaceuticals sold hospital assets, a few years ago, local pharmaceutical companies through the acquisition of assets, actively diversified layout to adjust the industrial structure, in the current period of reform and integration of the pharmaceutical industry has been "challenged." At the 11th China Pharmaceutical Entrepreneur Scientists Investor Conference in 2019, Fosun Co-President and Fosun Pharma Chairman Chen Qiyu also said, "We see more of Fosun's development on the road to mergers and acquisitions, but in the last two years, the driving force of enterprise development is constantly changing, from merger-driven to innovation-driven."the external environment of China's pharmaceutical industry is profoundly changing, and it is foreseeable that in the future it will become mainstream for companies to sort out their core competency and continue to invest, while divesting or cutting non-core businesses.
(E drug manager)