Key words of the medical and biological industry in 2020: M & A Integration

[pharmaceutical network market analysis] recently, pharmaceutical and biological industry enterprises have made new moves The news that two pharmaceutical giants, MSD and GSK, announced the separation of their business on the same day has attracted great attention in the industry The industry believes that in 2020, the key words of the pharmaceutical and biological industry will also emerge, that is, M & A integration Multinational pharmaceutical companies also announced the split plan On February 6, 2020, MSD and GSK announced the split business plan on the same day MSD will spin off its women's health products, mature products and bio generic products, and establish an independent listed company, tentatively known as "Newco", whose business scope covers skin, pain, respiration, preferred cardiovascular products, and other products in the field of MSD According to the split plan, MSD is expected to complete in the first half of 2021, and there will be no significant personnel adjustment at present For the reason of the split of MSD's business, the industry generally believes that its heavyweight products, such as Suning, Shujiangzhi and baoliezhi, have passed the protection period Especially after the approval of MSD's K drug, few new heavy-duty products have been approved in recent years Facing the double pressure of price and market, MSD has to split its business and focus on its core business GSK plans to split the company into two entities over the next two years One will focus on drugs and drug development, the other on consumer healthcare products Through this split, GSK hopes to save 700 million pounds per year by 2022 and improve its operational performance from 2022 At the same time, the company has started to sell some non core consumer products to help its performance growth In fact, in addition to MSD and GSK, in 2019, Pfizer, Novartis, Aberdeen and other multinational pharmaceutical companies have split or merged their businesses M & A integration has become the key word in 2020 The industry believes that in the current context, more and more heavy drugs will continue to reduce prices, and the competition in the pharmaceutical market will be more fierce In 2020, M & A and integration will become the key words of medicine and biology industry From the perspective of the intention of M & A integration of multinational pharmaceutical enterprises, some are due to the expiration of heavy original research drugs, some are due to the difficulty of new drug research and development, and some are hoping to supplement their own shortcomings through M & A Industry insiders pointed out that once the original research drug expires, it means that "high pricing, high gross profit" will become "floor price, low gross profit", which is the invincible law of the global drug market and the challenge that multinational drug companies have to face As far as the domestic market is concerned, with the promotion of China's policy of expanding the scope of centralized procurement and normalizing the volume of procurement, the progress of domestic generic drugs replacing imported drugs is accelerating, and many multinational pharmaceutical enterprises are facing challenges In July 2019, the news of Pfizer's divestiture of general strength attracted the attention of the industry Puqiang was originally one of Pfizer's three business segments, which has more than 20 well-known mature drugs, involving non infectious disease treatment fields such as cardiovascular, pain, psychiatry and urology Many of the sales revenue and profits of puqiang come from the Chinese market According to industry analysis, Pfizer's divestiture is the next response to China's volume sourcing In the first round of belt purchase, Lipitor (atorvastatin calcium tablets) and levoxil (amlodipine besylate tablets), two of puqiang's heavyweight products, both fell off the standard and lost many markets Pfizer said the deal means the company will focus on innovative drugs In general, with the tide of M & A and integration continuing to flow, the global pharmaceutical industry pattern may change in 2020, and more small and medium-sized pharmaceutical enterprises will be acquired and integrated by large-scale pharmaceutical enterprises through merger and reorganization.