Multinational pharmaceutical companies are frequently selling assets to focus on their main business

【Pharma Network Industry News】Cutting marginal services and focusing on high-value areas has become an industry trend
.
Currently, pharmaceutical companies are also increasingly spinning off or seeking to sell their non-core products, businesses, etc.
to focus on areas with higher profit margins
.
For example, Lan Sau SmithKline spun off its consumer division into a separate company earlier this year, and following GSK, Johnson & Johnson, it has recently been reported that Viatris is also considering selling its consumer health business assets in Europe, which may sell for more than
3 billion euros ($2.
9 billion).
It is understood that Huizhi was founded in 2020 by the merger of Mylan and Pfizer, and is a very large generic drug company
in the world.
Since its establishment in 2020, Hui Chi has been continuously integrating
its business and corporate structure.
In March this year, India's Biocon Biologics acquired Huizhi's biosimilar business
for up to $3.
335 billion.
The transaction is expected to close
in the second half of 2022.
In addition, in the Chinese market, Hui Chi has also undergone organizational structure adjustment, the company has been adjusted from the original five Chinese divisions to four divisions, namely North, East, Central and South
.
On October 9, following the agreement reached in March, Bayer also officially completed the sale of its environmental science professional business to international private equity firm Cinven
.
The business generated sales of approximately EUR 600 million in 2021 and was purchased for USD 2.
6 billion (EUR 2.
6 billion).

Bayer's Environmental Science business unit offers products
for the control of pests, diseases and weeds in non-agricultural areas.
The range includes products
for golf courses, railways and roadsides, warehouses, large kitchens and local mosquito control.
In addition, the business unit offers a digital pest management system
.
Divided into the industry, the divestiture will allow Bayer to focus on the successful implementation
of its growth strategy in its core agricultural business and Crop Science.
In addition to the above-mentioned pharmaceutical companies selling non-core assets, since the beginning of this year, a number of multinational pharmaceutical companies have also sold their business
in China.
For example, Zhongshan Preparation Factory (hereinafter referred to as Sandoz Zhongshan Pharmaceutical Factory) owned by Taxi (China) was acquired by Jiuzhou Pharmaceutical, and Daiichi Sankyo (China) signed an equity transfer agreement with Chongqing Yaoyou Pharmaceutical Co.
,
Ltd.
It is worth noting that compared with the sale of foreign assets by multinational pharmaceutical companies, many domestic pharmaceutical companies love to acquire overseas companies
.
For example, in 2022, Kanglong Chemical successively acquired Aesica (API commercialization base) in Cramlington, UK, and Coventry production base (API commercialization base) in the United States to enhance the company's overall strength
in small molecule CDMO and drug safety evaluation 。 China Biopharma also announced in June this year that the company, its wholly-owned subsidiary invoX Pharma Limited and invoX's wholly-owned subsidiary Fennec Acquisition Incorporated entered into a merger agreement and plan with F-star Therapeutics, Inc.
to acquire F-star Therapeutics for more than US$160 million to further complete the company's antibody drug pipeline
。 .
.
.
.
.
.
In general, at a time when the pharmaceutical market is affected by reform and the concentration is increasing, whether it is for the purpose of "returning blood", or for the purpose of gathering resources and focusing on the main business, spin-off, integration, and sale will become the norm and continue to spread
among domestic and foreign pharmaceutical companies.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.