International pharmaceutical giants slimming brings opportunities for Chinese Pharmaceutical Enterprises

Source: since late April 2014-05-16, almost the top 10 pharmaceutical companies in the world have launched M & A This M & a wave is different from the past In the past, the purpose of M & A was to be bigger This time, the main direction is to be stronger If GSK and Novartis carry out asset replacement, GSK will sell the tumor business unit to Novartis as a whole, and GSK will obtain Novartis vaccine business in addition to influenza vaccine There is a similar deal between Bayer and Merck Bayer plans to acquire Merck's consumer health sector with us $14.2 billion Through this acquisition, Merck will obtain Bayer's support for its therapeutic drug research and development, and further focus its business on research and development From the above two cases, M & A between giants is thin and strong After the success of M & A, from the perspective of global pattern, it will be the strong and the strong Domestically, the impact may not be that big Foreign companies in China focus on high price, high value-added original research drugs, while domestic generic drugs have been listed, they can compete through price However, in recent two weeks, there have been more voices questioning the quality and efficacy of generic drugs If domestic enterprises fail to improve the quality and efficacy of generic drugs, they will still be in a weak position in the competition for the top three hospitals International giants are keen on M & A, and domestic pharmaceutical companies are not weak in M & A enthusiasm Since this year, Zhifei biology, Kangenbei, etc have made substantial acquisitions, and many listed pharmaceutical companies such as Laimei pharmaceutical have set up merger and acquisition funds Domestic pharmaceutical enterprises have their own strong demand for M & A, but also because of the new GMP certification system, a large number of pharmaceutical enterprises will be eliminated by the market, which will bring passive M & A opportunities But domestic pharmaceutical companies should learn from Fosun Pharmaceutical and look out in the search for acquisition targets Some weak assets in the weight-loss movement of international giants can not be completely exchanged with their counterparties, so they need to find other buyers For example, Merck recently announced that it would sell some ophthalmic products to Japan's zenith Pharmaceutical Co., Ltd for $600 million Domestic pharmaceutical companies should actively strive for such opportunities One of the realistic background of this international pharmaceutical M & a tide is that patent drugs have expired one after another, while the number and frequency of original research drugs on the market have been greatly reduced This is related to the reduction of R & D investment by international giants Pfizer has closed a large number of R & D centers in its M & A activities in the past 10 years "In the past, the pharmaceutical industry was proud to invest more in R & D than other industries The R & D investment in new drugs will account for an average of 20% of the operating revenue, but at present, this level is declining, and Pfizer's R & D investment accounts for only about 10% of the total revenue," commented John ramatina, a former senior vice president The biggest problem for domestic enterprises is the lack of R & D capability Now, we can use the current opportunity to build an international R & D platform In this respect, Nanjing's pioneer pharmaceutical industry has been ahead of the rest Last year, the company attracted Zang Jingwu, former global senior vice president of GlaxoSmithKline, etc to build an innovative drug risk fund platform called "baijiahui" It plans to set up a fund with a total scale of 3 billion yuan and invest in nearly 100 innovative projects by 2016 It is reported that in the past three months, baijiahui has contacted nearly 200 projects from the United States, Europe, Israel and China, and selected several projects for investment Imagine that 10% of 100 successful projects will bring huge profits In fact, Xiansheng pharmaceutical industry has always been a R & D-oriented enterprise, and also a few enterprises whose R & D funds account for 10% of sales revenue Because of this, it did not perform well after listing in the United States, and finally delisted Therefore, the transformation of Chinese pharmaceutical enterprises to R & D needs external support Recently, Professor Wang Bin of Fudan University sold the global rights of preclinical drugs for Alzheimer's and multiple sclerosis to foreign enterprises Due to lack of money and other reasons, the large and good varieties independently developed by China may flow out, and the good R & D platforms and talents abroad are more difficult to attract Some pharmaceutical companies can only take the second place and participate in the research and development of original research drugs in the United States in the form of participating in small shares It is hoped that China will obtain the exclusive agency right when the original research drugs enter in the future Samsung's success is obvious to all, but its success cannot be separated from the support of South Korea Samsung's development history can be said to be the history of external experts' assistance At the beginning, every weekend, Samsung sent planes to Japan to pick up engineers, and paid three or six times as much to dig people in Japan It is said that Samsung now has hundreds of Japanese engineers In the initial stage, Samsung did not have such economic strength at all, and the cost of digging people was 1 / 3 for Samsung and 2 / 3 for South Korean government Therefore, in order to develop Chinese pharmaceutical enterprises, the central government and local governments should set up similar funds to support enterprises to recruit world-class R & D talents In fact, not only pharmaceutical enterprises, but also emerging industries have similar needs In order to shorten the period of structural transformation, it is necessary for the government to do so.