Increased concentration in the industry Well-known pharmaceutical companies are being sold

industry concentration has further increasedthe number of mergers and acquisitions between pharmaceutical companies in 2019, observing these cases can be found that some divestiture subsidiaries slimming down, and some through acquisitions to strengthen their own strengths. In addition, the sale of non-core assets by foreign pharmaceutical companies and the pick-up of domestic pharmaceutical companies have also caused industry analysis.In some of these cases, which have been completed and are still in progress, an inventory of one-year acquisitions seems to reveal that the industry is moving towards greater concentration.With the deepening of medical reform, consistent evaluation, volume procurement, DRG and other policies, the industry access threshold is raised, small and medium-sized enterprises will be acquired by large enterprises more frequently.Of course, this is just as in the "Several Opinions on Further Reforming and Perfecting the Policy on the Circulation and Use of Pharmaceutical Production" issued by the State Office in early 2017, "supporting the merger and reorganization of pharmaceutical production enterprises, cultivating a number of large enterprise groups with international competitiveness, and increasing the concentration of the pharmaceutical industry".Suzhou Novarma Sales CompletedOn December 21, Zhejiang Jiuzhou Pharmaceutical Co., Ltd. issued the Announcement on the Completion of the Delivery of 100% Equity of Suzhou Novarma Pharmaceutical Technology Co., Ltd., formally joining Suzhou Novarma.On November 30, Jiuzhou Pharmaceuticals announced that the board of directors had approved the "Proposal on Out-of-Country Investment to Acquire a 100% Stake in Suzhou Novarma Pharmaceutical Technology Co., Ltd.", estimating that it would acquire 100% of Suzhou Novarma after the divestiture of technology and pharmaceutical development assets held by Novarma Investment with a self-financing of about RMB790 million.Data show that Kyushua Pharmaceuticals acquired Suzhou Novart after divesting Novaral's holdings of technology and pharmaceutical development assets, mainly plant, production lines, process equipment and so on.Fosun Pharma's $3.6 billion sale of assetsOn December 19, Shanghai Fosun Pharma (Group) Co., Ltd. issued a Notice of Progress in The Sale of Assets and Out-of-State Investments, proposing to transfer all Healthy Harmony Holdings held by NF Unicorn Research L.P., L.P. (whose main assets are harmony hospitals and clinics) limited partnership interests and shares in Healthy Harmony Holdings, L.P. Managing Partner Healthy Harmony GP, Inc. The transfer is valued at about US$523.15 million (RMB3.6 billion).Tiansli's sale of Tiansli Pharmaceutical Marketing GroupOn December 17, Tiansli announced that it had signed a Framework Agreement with Chongqing Pharmaceuticals to sell its controlling subsidiary, Tianjin Tiansli Pharmaceutical Marketing Group.According to the Agreed Framework, Chongqing Pharma intends to acquire the company's direct and indirect holding of 87.47 percent of Tians Marketing and the shares held by Tianx Marketing's other shareholders by paying a cash price.Nanjing Pharmaceutical Holdings Enhua and RunOn December 13, Nanjing Pharmaceutical Co., Ltd. issued a "notice on the acquisition of equity to complete the registration procedures for the change of shares", said that the acquisition of Jiangsu Enhua and Run Pharmaceutical Co., Ltd. for 72.24 million yuan, has completed the registration of shareholders, legal representatives of the change, to which Nanjing Pharmaceuticals directly holds 70% of Enhua and Run shares.On November 27th, China Resources 39 acquired Ano Pharmaceuticals on November 27th, China Resources Sanyu Pharmaceutical Co., Ltd. issued a "Announcement on the Acquisition of 100% Equity in Ano (China) Pharmaceutical Co., Ltd.", proposing to acquire 100% of Theo (China) Pharmaceutical Co., Ltd., which is to acquire 1.42 billion yuan. According to the announcement, the core products of Ano Pharmaceuticals are oral solution of calcium glucafoate, vitamin C chewing tablets, ginseng stone granules, and its "Aono", "Kincin jin beggar" is a well-known brand of calcium supplementation for children. China Resources 39 said the acquisition can improve the layout of the self-diagnosis and treatment (CHC) category, can be combined with China Resources 39 in terms of consumer insight, brand operation and terminal coverage advantages. Pfizer's merger with Mylan On November 12, Mylan and Pfizer officially announced the name of the new company, Viatris, a merger of Mylan and Pfizer subsidiary Pfizer. Pfizer's global revenue was $12.5 billion and China contributed $2.4 billion, according to the 2018 results. Mylan, a multinational generics giant with global revenues of $11.434 billion in 2018, does not yet operate in China. On November 7th, Dasanlin Pharmaceutical Group Co., Ltd. issued an announcement on the acquisition of a 51% stake in Nantong Jianghai Pharmaceutical Chain Co., Ltd., proposing to acquire a 51% stake in Nantong Jianghai Pharmaceutical Chain Co., Ltd., targeting 123 pharmacies chains with a purchase value of 120 million yuan. GSK's sale of the Suzhou plant, Heptin On July 8, Fosun Pharma announced that its controlling subsidiary, Chongqing Pharmaceuticals Pharmaceutical Co., Ltd., intends to grant a 100% stake in GlaxoSmithKline Pharmaceuticals (Suzhou) Co., Ltd. for not more than RMB250 million. Upon completion of the transfer, a production license, GMP certificate, etc. for the registration of the drug for the treatment of chronic hepatitis B (specification: 0.1g) will be held. On July 9, GSK China confirmed to Seber blue that the deal was expected to close by the end of November. China Pharmaceutical Holdings acquisition of Anhui Pharmaceutical Group May 8, State Pharmaceutical Holdings Anhui Co., Ltd. official public platform announced that: China Pharmaceutical Holdings acquisition of Anhui Pharmaceutical Group officially signed. Public information shows that Anhui Pharmaceutical Group is a large-scale commercial circulation enterprise approved by the Anhui provincial government in December 2002. China Resources Pharmaceuticals acquisition jiangzhong On April 17, Jiangzhong Pharmaceutical Co., Ltd. announced that it had recently received a notice from the company's controlling shareholder, approved by the Jiangxi Provincial Market Supervision Administration, and that the controlling shareholder had completed the registration of industrial and commercial changes in the name and scope of business of the enterprise on April 8, 2019. After the change, Jiangxi Jiang zhong pharmaceutical (group) co., Ltd. changed to China Resources Jiang zhong pharmaceutical group limited liability company. Jiangzhong Pharmaceuticals said in its 2018 annual report that the "Jiangzhong" brand is worth 20,715 million yuan, which is the 231st place in China's top 500 brands and the 6th place in the pharmaceutical industry. For China Resources Pharma, the acquisition of Jiangzhong Group to obtain "Jiangzhong" "first yuan" and other brands. On January 3rd, when announced a $74 billion acquisition of New Base. Under the agreement, Pepsi-Mercer will buy The New Base in a $74 billion cash and stock deal to create a first-class biopharmaceutical giant that can compete with the world's largest drugmaker. In fact, drug mergers and acquisitions in 2019 go far beyond that, by combing through the actions of well-known companies, with the aim of finding trends in the industry under these mergers and acquisitions. In addition, this year many listed pharmaceutical companies to sell assets in the announcement, the property was thrown out more, some analysts think that pharmaceutical companies to sell housing to live, but a more rational view should be limited space for real estate appreciation. (Cypress Blue)