Mergers and acquisitions in the biomedical industry have become a trend! In the past three years, more than 900 cases have occurred, and the total amount of mergers and acquisitions has reached 100 billion

【Pharmaceutical Network Industry Dynamics】In recent years, with the rapid development of the biomedical industry, local pharmaceutical companies have accelerated the pace of mergers and acquisitions to further expand their business, enhance their enterprise scale and comprehensive strength
in order to improve profitability, supplement product lines, extend the sales market, improve industrial layout, and borrow ships to go to sea.

On September 7, Hygia Medical issued an announcement that the company intends to acquire 30% of the equity
of Kaiyuan Jiehua Hospital for 15.
3 million yuan.

Upon completion of the transaction, the Company will indirectly hold a 70% stake in Kaiyuan Jiehua Hospital through Gamma Star Technology and control the remaining 30% equity
interest in Kaiyuan Jiehua Hospital that will be held by the buyer in accordance with the new contractual arrangement.

For this merger, the company believes that it can enhance and fully control and influence the management and operation of Kaiyuan Jiehua Hospital, increase its economic interest in Kaiyuan Jiehua Hospital, increase the performance of listed companies, and provide more flexibility
for the group's strategic decisions.

On the same day, Tiantan Bio issued an announcement on the progress of asset acquisition by acquiring equity and capital increase, the company has completed the relevant acquisition and capital increase work, and the company has held 63.
6962% of the equity
of Xi'an Huitian.

In August, the acquisition of pharmaceutical companies became more frequent, including Huadong Pharmaceutical's acquisition of 60% of the equity of Huaren Technology, Duorui Pharmaceutical's proposed acquisition of 40% of the equity of Bozhou Tianji held by Hubei Tianji, and the acquisition of 50.
11% of the equity of Shenzhou Biotechnology by China Resources Shuanghe Pharmaceutical; Jianzhijia completed the acquisition of 100% equity of Tangren Pharmaceutical for 2.
074 billion yuan.
.
.
According to industry statistics, there were 63 M&A cases in August alone, involving an acquisition amount of 8.
2 billion yuan
.

It is worth noting that not only local pharmaceutical companies are acquisition targets, overseas Biotech is also the object of mergers and acquisitions by some pharmaceutical companies to accelerate the promotion of international layout, for example, on June 23, China Biopharmaceuticals announced that it intends to acquire all the common shares issued outside the British dual antibody company F-star for about 160 million US dollars, and through the acquisition of the company, it will obtain the latter's F-star proprietary new generation bispecific antibody platform, which is expected to become the pillar of cancer immunotherapy in the future
。
In addition, since the beginning of this year, there have been mergers and acquisitions of overseas companies by Qiming Medical, Kanglong Huacheng, Subsidiaries of Sihuan Pharmaceutical, Gloria Ying, Warby Medical, and China
Biopharmaceuticals.

According to iFinD data from Flush, from 2022 to September 7, a total of 123 mergers and acquisitions occurred in the domestic A-share biomedical industry, involving an amount of 14.
395 billion yuan, significantly more than the previous year's 100 mergers and acquisitions, with an amount of 15.
788 billion yuan
.

In addition, from the statistics of the past three years, more than 900 mergers and acquisitions in the biomedical industry have occurred, involving an amount of 171 billion yuan
.

Behind the active mergers and acquisitions of pharmaceutical companies, the industry reminds us to be
cautious.

The biomedical industry has a fast iterative development speed, and has the characteristics of long R&D cycle, high R&D investment, and relatively high R&D failure rate, etc.
For some pharmaceutical companies, mergers and acquisitions may be used to quickly expand pipelines, develop new technologies, enhance competitiveness and expand market share
.

However, there are also pharmaceutical companies that may be out of speculation on stock prices and blind mergers and acquisitions
.

Judging from the mergers and acquisitions transactions in recent years, some companies have stepped
on mines from time to time due to insufficient preliminary research and incomplete risk identification.

In this regard, the industry believes that when biopharmaceutical enterprises carry out M&A activities, they should grasp the foundation, look at the problem from a long-term perspective, do a good job in the preliminary research, and avoid risks
to their own operations because of blind mergers and acquisitions.

Disclaimer: In no event shall the information or opinions expressed herein constitute investment advice
to any person.