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    Home > Medical News > Latest Medical News > In 2022, the wave of mergers and acquisitions of pharmaceutical companies is coming?

    In 2022, the wave of mergers and acquisitions of pharmaceutical companies is coming?

    • Last Update: 2021-12-30
    • Source: Internet
    • Author: User
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    In recent years, China's pharmaceutical and medical industries have been in a state of continuous and rapid development, and are gradually moving towards scale and intensification
    .
    It is worth noting that in this process, Chinese enterprises have begun to choose mergers and acquisitions to continuously promote their own development in order to further improve their overall competitiveness, achieve industrial integration and structural rationalization
    .
    It is understood that as of the end of September, China's pharmaceutical and biological industry has more than 100 mergers and acquisitions
    .
    Since the second half of the year, mergers and acquisitions in the domestic pharmaceutical industry are still active, and a large number of companies including Buchang Pharmaceuticals and Yuanda Pharmaceuticals have also issued merger announcements
    .
    For example, Buchang Pharmaceutical announced on October 14 that the company and its wholly-owned subsidiary, Shenzhou Pharmaceutical, intends to acquire 100% of Beijing Chengrui's equity at a total transaction price of 271 million yuan
    .
    The announcement shows that the purpose of this acquisition is to meet the future business development needs of Buchang Pharmaceuticals, promote the smooth implementation of the company's overall strategy, enhance the company's overall operating environment and external image, and realize the plan of "China's Johnson & Johnson, the world's step"
    .
    In September, Jiangzhong Pharmaceutical issued an announcement stating that it intends to acquire 51% of the shares of Hays Pharmaceuticals through equity transfer and capital increase; among them, it plans to acquire 36% of the shares of Hays Pharmaceuticals through public delisting (Jinergy Holding Equipment Manufacturing Group Co.
    , Ltd.
    It holds 25.
    7102% equity of Hays Pharmaceuticals, and 10.
    2898% equity of Hays Pharmaceuticals held by Jincheng Wangtai Technology Industry and Trade Co.
    , Ltd.
    )
    .
    Regarding this cooperation, Jiangzhong Pharmaceutical clearly stated that it will help to enrich the company's product structure with the help of Hayes Pharmaceuticals, improve Jiangzhong Pharmaceutical’s gastrointestinal business layout, and enhance the extensive collaboration between the two parties in terms of brands, products, and terminals.
    Integrate with resources to enhance the company’s profitability
    .
    It is worth mentioning that, in addition to the current large-scale domestic pharmaceutical companies that are accelerating the initiation of mergers and acquisitions, the performance of foreign pharmaceutical companies in mergers and acquisitions in recent years has been relatively more prominent
    .
    For example, a huge acquisition in the pharmaceutical industry this year is Merck’s US$11.
    5 billion acquisition of Acceleron.
    Its sotatercept, currently in Phase III, has the potential for multi-billion-dollar peak sales.

    .
    Another transaction of more than 5 billion U.
    S.
    dollars is Jazz Pharmaceuticals' acquisition of GW Pharma for 7.
    2 billion U.
    S.
    dollars.
    The company’s main product is the epilepsy drug Epidiolex.
    Last year’s sales exceeded 500 million U.
    S.
    dollars and may become a blockbuster drug
    .
    Industry analysts predict that according to current industry trends, large pharmaceutical companies may have a large number of mergers and acquisitions in 2022, and the total transactions are expected to exceed US$1.
    7 trillion
    .
    The purpose of continuous mergers and acquisitions by large pharmaceutical companies includes enhancing R&D pipelines, investing in blockbuster drugs under research or about to be launched, complementation of product portfolios and synergistic effects of scale, and so on
    .
    Therefore, the analyst believes that the 18 companies examined by the Porges team will use their assets to introduce additional funds, and the theoretical transaction amount may exceed $1.
    7 trillion
    .
    In general, with the continuous development of the pharmaceutical industry in recent years, market competition has become increasingly fierce
    .
    Affected by this, domestic and foreign pharmaceutical companies are expected to continue to accelerate the adjustment of strategic planning, continue to enrich their production lines, and enhance their innovation capabilities
    .
    In this context, M&A activities will continue to increase.
    In 2022, the industry M&A tide may come again
    .
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

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