In order to solve the development dilemma, the split and merger of pharmaceutical companies will become a "regular operation"

Recently, GE Healthcare announced that the company's plan to split from GE Group has been completed, and GE Healthcare will begin to be listed on the NASDAQ stock exchange as an independent company, effective
on the same day.
According to reports, GE Healthcare has four major businesses: medical imaging, ultrasound, life care and drug diagnosis, with about 51,000 employees in more than 160 countries around the world, annual revenue of about 18 billion US dollars, annual investment of more than 1 billion US dollars in research and development, and more than 4 million global installed units
.
It is disclosed that the split of GE Healthcare was completed
through GE's distribution of approximately 80.
1% of GE Healthcare's shares in proportion to GE's existing shareholders.
GE will retain approximately 19.
9% of the outstanding common stock of
GE Healthcare following the split.
It is worth mentioning that or affected by the news of the split, GE Healthcare's stock price closed up 8.
02% on the day, with a market value of $27.
5 billion.

In fact, the spin-off of pharmaceutical companies has always been very common
.
Among them, multinational pharmaceutical companies have been focusing on core businesses through spin-off mergers and acquisitions to enhance their core competitiveness
.
Especially last year, spin-off events were more intensive, and Johnson & Johnson, Novartis, GSK, 3M, etc.
have successively announced splits and reorganizations
.
Domestically, too
.
Not long ago, on December 19, 2022, Luye Pharmaceutical announced that Boan Biotech, a holding subsidiary and innovative biopharmaceutical company, entered the IPO stage and will be listed
on the Hong Kong Stock Exchange.
According to the data, Boan Biotech, founded in 2013, is a biosimilar company focusing on tumor, metabolism, autoimmunity and other biosimilars, and in 2019, Luye Pharmaceutical acquired 98% of its equity for 1.
447 billion yuan, and Luye Pharmaceutical held 72.
32% of the equity
of Boan Biotech before listing.
Prior to this, Sihuan Pharmaceutical Holding Group Co.
, Ltd.
, a Hong Kong listed company covering medical beauty, pharmaceutical and other business sectors, has also announced that it will split Xuanzhu Biotechnology Co.
, Ltd.
, a subsidiary of innovative drugs, to be listed on the Science and Technology Innovation Board, which has been accepted
.
At present, the divestment of some businesses and the spin-off of subsidiaries can be said to be regarded by pharmaceutical companies as a manifestation
of focusing on vertical business.
In the future, with the rapid and high-quality development of the pharmaceutical industry as a whole, it is expected that the spin-off in the industry will be more frequent
.
It is worth noting that there are "branches" and of course "combinations", and pharmaceutical companies have also made frequent moves in acquisitions recently
.
On January 3, Aier Eye announced that the company plans to invest 470 million yuan to acquire 14 hospitals
including Shaoxing Aier and Zhoushan Aier.
Fengyuan Pharmaceutical announced on the evening of January 3 that the company intends to purchase 100% of the equity
of Tigermed Technology held by Tigermed Biologics by issuing shares.
On the same day, China Resources Pharmaceutical announced that the share transfer registration of China Securities Depository and Clearing Co.
, Ltd.
had been completed in relation to the proposed acquisition of the interests of KunYao Group.
.
.
Industry analysts believe that pharmaceutical companies are currently facing multiple development difficulties, such as obvious pressure on profits and approaching patent cliffs, etc.
, in this context, spin-offs and mergers and acquisitions will become more and more common "routine operations"
for enterprises to solve dilemmas.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.