Pharmaceutical companies keen on "buying, buying and buying" announced the termination of a large acquisition of more than 1 billion yuan!

Fosun Pharma has started the road of investment and mergers and acquisitions as early as its landing on the A-share main board market, including many overseas companies
such as Alma, a global medical cosmetology company.
However, recently, this company that is keen on "buying, buying and buying" announced the termination of a large acquisition
of more than 1 billion.
In early November, Fosun Pharma announced that its holding subsidiary, Fosun Pharma Industrial, Pte.
Ltd.
(hereinafter referred to as "Fosun Pharma Pte.
") WILL TERMINATE THE ACQUISITION OF ONCOCARE MEDICAL PTE.
LTD, SINGAPORE'S LARGEST PRIVATE ONCOLOGY CENTRE (HEREINAFTER REFERRED TO AS "ONCOCARE"
).
Judging from public information, the acquisition took
only about 4 months from the official announcement to the termination.
On June 6 this year, Fosun Pharma announced that Fosun Pharma Pte.
intends to acquire a total of 60% of ONCOCARE's equity
in cash capital of no more than S$217.
672 million (about 1.
076 billion yuan).
ONCOCARE is currently a private oncology specialist medical centre
with a large number of local oncologists.
As of 6 June, ONCOCARE has a total of 7 clinics in major private medical centres in Singapore, including the only private women's oncology medical centre
in Singapore.
Fosun Pharma has said that ONCOCARE relies on the local sound medical system, rapid drug marketing review mechanism, perfect insurance payment system and extensive drug access, and takes tumor immunotherapy and tumor targeted therapy as its characteristics and advantages
.
Through this transaction, the Group's medical and health service business will be expanded in Southeast Asia and will help improve
the Group's all-round solution capabilities in the field of oncology treatment.
Pursuant to the Share Transfer Agreement at that time, the closing conditions precedent for the transaction must be satisfied (or waived) on or before the agreed date (or later date agreed in writing).

Fosun Pharma stated that due to the many links involved in the closing of this transaction, it could not be reached within the time limit agreed by the parties (before October 30, 2022), so the parties agreed to terminate
the transaction in accordance with the agreement.
As the transaction was not closed, Fosun Pharma Pte.
also did not pay the
investment.
Therefore, the Company does not believe that the termination of this transaction will have a material impact
on the current and future results of the Group and its holding subsidiaries.
According to the data, Fosun Pharma is an innovation-driven global pharmaceutical and health industry group rooted in China, directly operating in pharmaceuticals, medical devices, medical diagnosis, medical and health services, and covering the pharmaceutical business field
through its shareholding in Sinopharm.
Focusing on the layout of key disease fields such as tumor and immune regulation, metabolism and digestive system, and central nervous system, the company has built and formed a small molecule innovative drug, antibody drug, cell therapy technology platform, and actively explored RNA, gene therapy, ADC, targeted protein degradation and other cutting-edge technology fields to enhance innovation capabilities
.
According to the third quarterly report of 2022, the company achieved revenue of 31.
61 billion yuan from January to September this year, a year-on-year increase of 16.
87%; The net profit was 2.
454 billion yuan, a year-on-year decrease of 31.
15%.

As for the reasons for the increase in revenue but not profit, Fosun Pharma said that it was mainly due to the year-on-year decrease in non-recurring profit and loss due to the loss of fair value change: due to market fluctuations and other factors, the share price of BNTX shares held by the Group at the end of the reporting period decreased compared with the end of 2021, and the net impact of fair value loss caused by changes in BNTX share price was about 1.
1 billion yuan
.
It is reported that BNTX refers to the German BioN-Tech, which is a research and development company dedicated to the treatment and preventive immunotherapy of cancer, infectious diseases and other serious diseases, and was listed on
the NASDAQ in the United States in 2019.
Fosun Pharma purchased BNTX shares in 2020 with an initial investment cost of RMB326 million and a book value of RMB2.
598 billion
as of the end of 2021.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.