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    Home > Medical News > Latest Medical News > In order to strengthen the coverage and extension of products and businesses, pharmaceutical companies are constantly "buying, buying and buying"

    In order to strengthen the coverage and extension of products and businesses, pharmaceutical companies are constantly "buying, buying and buying"

    • Last Update: 2022-11-15
    • Source: Internet
    • Author: User
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    Extending the industrial chain or expanding the product line through investment, acquisition and other means has become the norm in the pharmaceutical field
    .
    Recently, a number of pharmaceutical companies have announced that they will strengthen the further coverage and extension
    of the company's products and business through acquisitions.

     
    On November 1, Weiss Medical announced that the company signed an equity transfer agreement with Hefei Dazu Creida Laser Equipment Co.
    , Ltd.
    and its natural person shareholders Wang Bizhan, Huang Heng, Yang Aichun and Xu Qingfeng, and the company intends to invest 58.
    8 million yuan to acquire 70% of the equity
    of Keruida Laser.
    According to the announcement, after the completion of the acquisition, it will help strengthen the company's further coverage and extension of urology and other departments, bring reliable channel expansion opportunities, and create new business growth points
    .

     
    On the same day, Haoyuan Pharmaceutical announced that the M&A and Reorganization Committee of the Science and Technology Innovation Board of the Shanghai Stock Exchange will hold the third review meeting of the M&A and Reorganization Committee in 2022 at 15:00 on November 8, 2022, to review the issuance of shares and the payment of cash to purchase assets and raise supporting funds and related party transactions of Shanghai Haoyuan Pharmaceutical Co.

    , Ltd.
    The transaction price of the target asset to be purchased this time is 410 million yuan, and 263 million yuan of the transaction price will be paid
    by the listed company issuing shares to the counterparty.

     
    It is worth mentioning that in addition to domestic pharmaceutical companies, multinational companies have also made frequent
    moves in acquisitions recently.
    A few days ago, it was reported that Johnson & Johnson agreed to acquire heart pump maker Abbiomed for a cash advance of $380 per share
    .
    Thanks to the news, Abbiomeed's share price soared 52%
    pre-market.
    The transaction, valued at approximately $16.
    6 billion, including debt and cash, is expected to close by the close of the first quarter of 2023, and Johnson & Johnson intends to fund
    the acquisition with cash on hand and short-term financing.

     
    Johnson & Johnson said the deal will accelerate its near- and long-term sales growth and will be slightly diluted
    in first-year adjusted earnings per share due to financing implications.
    Johnson & Johnson expects the deal to add nearly $0.
    05 to earnings per share by 2024, after which it will continue to grow
    .

     
    However, while pharmaceutical companies are accelerating "buying, buying and buying", some companies are not making good
    progress.
    It is reported that on the evening of January 1, Wanbangde issued an announcement that the company decided to terminate the acquisition of 29.
    5% of the shares
    of Consun Pharmaceutical Group Limited (hereinafter referred to as "Consun Pharmaceutical Group Limited").
    In response to the reasons for the termination of the restructuring, Wanbangde said that as of the date of this announcement, Wanbangde and the relevant parties finally failed to reach an agreement on the core terms of the transaction plan, and after friendly negotiation, the parties agreed to terminate the Share Transfer Intention Agreement
    .

     
    But in general, from the perspective of the global market, mergers and acquisitions between pharmaceutical companies are still accelerating
    .
    Especially with the decline of traditional chemical drugs and the increasing difficulty of biopharmaceutical research and development, the entire market is looking for the next scalable product category
    .
    At the same time, the current mergers and acquisitions of pharmaceutical companies also continue to have two main lines, namely acquiring product lines or new markets and responding to pressure from
    payers.
    However, it should be noted that although through mergers and acquisitions, it can quickly increase the layout of many fields and strengthen the further coverage and extension of enterprise products and businesses, but returning to the long-term development of enterprises, the industry generally believes that enterprises still need to focus on innovation and research and development in order to go further
    .

     
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