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    Home > Medical News > Latest Medical News > In order to cope with the challenges of transformation or upgrading, M&A activities of pharmaceutical companies are becoming increasingly enthusiastic

    In order to cope with the challenges of transformation or upgrading, M&A activities of pharmaceutical companies are becoming increasingly enthusiastic

    • Last Update: 2022-10-03
    • Source: Internet
    • Author: User
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    Recently, mergers and acquisitions in the biomedical industry have been active
    .
    According to incomplete statistics from the Shanghai Securities News, in the first seven months of this year, a total of 96 A-share listed pharmaceutical companies carried out 167 mergers and acquisitions, with a total transaction amount of 38.
    7 billion yuan.
    Since September, more than 10 pharmaceutical companies have issued announcements related to mergers and acquisitions
    .
     

    For example, on the evening of September 9, Da Ren Tang issued an announcement that it intends to increase the capital of its holding subsidiary, Keju Biological, by 43.
    2 million yuan.
    The company previously announced that it intends to acquire no more than 11.
    9686 million shares of Keju Bio in stages at a price of no more than 9 yuan per share through the transfer of the agreement, with a total total investment of not more than 108 million yuan
    .
     

    For this acquisition, Da Ren Tang said that it is a decision
    made by the company to integrate medical device and pharmaceutical circulation resources and create a platform for the in vitro diagnostic industry, especially in the POCT field.
     

    On September 7, Hegia Medical issued an announcement that it intends to acquire 30% of the equity of Kaiyuan Xiehua Hospital for 15.
    3 million yuan, and the company has indirectly held 70% of the equity
    of the above hospitals through Gamma Star Technology.
    On the same day, Huadong Pharmaceutical announced that Huadong Investment, a wholly-owned subsidiary, completed the delivery
    of Heidelberg Pharma's public additional shares and agreed to transfer shares.
    In addition, Huadong Pharmaceutical also announced on August 9 that it will invest a total of no more than 396 million yuan to acquire 60% of the equity of
    Huaren Technology.

     

    Incomplete statistics show that as of September 12, since the beginning of this year, A-share pharmaceutical and biological listed companies have issued a total of 231 mergers and acquisitions related announcements (excluding failed cases), involving a total of 163 listed companies
    .
    Among them, there have also been a number of large-scale M&A projects
    of more than 1 billion yuan.

     

    In this regard, analysts said that the frequent mergers and acquisitions of pharmaceutical companies this year are mainly caused by three reasons: First, the overall valuation of the pharmaceutical industry has fallen sharply, so the risk of mergers and acquisitions at this time is small
    .
    Secondly, the domestic pharmaceutical industry is undergoing structural changes, and the performance growth of some segments is difficult to sustain, and mergers and acquisitions can bring new growth points
    .
    In addition, some companies are rapidly entering new tracks through mergers and acquisitions, or promoting the integrated development of
    the industrial chain.

     

    In general, in fact, most pharmaceutical companies are currently facing challenges such as transformation or upgrading, and in this context, reasonable and controllable expansion plans will be conducive to rapid expansion of enterprises
    .
    In the future, under the background of stricter medical insurance control fees and increasingly crowded tracks, the biomedical industry is expected to continue to set off a new round of mergers and acquisitions
    .
    However, it should be noted that at the same time, the acquisition of biomedical assets also needs to be more cautious, because there will be more uncertainty in
    research and development and commercialization.

     

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