Pharmaceutical giants report large-scale mergers and acquisitions!

Recently, the pharmaceutical giant Bojian reported an M&A case, and the target of the negotiation is South Korea's Samsung Group
.
Affected by this news, as of the close of trading on December 29, Bojian's share price rose 9.
46%
.
According to news, Bojian is in contact with Samsung, hoping to sell its shares to it, and its valuation may exceed 42 billion U.
S.
dollars
.
The current valuation of Bojian is approaching 38 billion, and the industry believes that the negotiated purchase price will be a premium of more than 10%
.
For this transaction, if the negotiations are successful, it means that Samsung will join the ranks of global biotech giants and expand its pharmaceutical business to areas other than biosimilars and contract production transactions
.
In fact, Samsung's acquisition also has traces to follow
.
In September of this year, Samsung stated that it would invest 240 trillion won in the next three years to expand its footprint in the fields of biopharmaceuticals, artificial intelligence, semiconductors and robotics
.
According to industry reports, Samsung is cultivating biological business, as a new growth engine, if it can successfully acquire Bojian, it will create an opportunity to make a leap
.
Biogen is a biomedical company focusing on the treatment of neurological diseases such as multiple sclerosis and Parkinson's disease
.
Public information shows that Bojian's annual income has fallen for the first time in decades to USD 13.
4 billion in 2020
.
This trend accelerated in the first quarter of 2021, with revenue falling by 24%, most of which was due to a 26% decline in sales of the multiple sclerosis drug Tecfidera
.
The product was hit by the expiration of the patent, and sales fell into weakness
.
In June of this year, Biogen's Alzheimer's disease drug Aduhelm was approved by the US regulatory agency.
This is the first new treatment for Alzheimer's disease approved by the FDA in 18 years
.
But the FDA also admitted that there is not enough evidence to show that the drug is beneficial to patients.

.
The efficacy of the new treatment method has been controversial.
The European Medicines Agency (EMA) has recently formally given a negative opinion on the marketing authorization application of Biogen and its partner Eisai for the treatment of early-stage Alzheimer’s disease (AD) by Aduhelm.
It pointed out some known conditions of the drug and questioned the safety of Aduhelm, especially a dangerous side effect called Amyloid-Associated Imaging Abnormality (ARIA), which may manifest as cerebral hemorrhage or swelling
.
The data shows that Aduhelm's sales performance after listing is only 300,000 US dollars
.
In the third quarter of this year, Bojian’s sales reached only 2% of the target of 14 million U.
S.
dollars
.
Subsequently, American media reported that due to the poor revenue of Aduhelm after its listing, Bojian planned to lay off as many as 1,000 employees in order to save up to 750 million US dollars in funds to deal with disputes about Aduhelm
.
In this regard, some people in the industry believe that this acquisition may help Bojian resolve its difficulties, and the cooperation between Bojian and Samsung is not the first attempt
.
It is reported that as early as 2011, Samsung and Bojian jointly established Samsung Biopharmaceuticals, focusing on the manufacture of low-cost biosimilars
.
The new company's macular degeneration treatment drug Lucentis was approved in the United States in September 2021
.
Samsung and Bojian have a 51:49 shareholding ratio and jointly own and manage the biosimilar business
.
"But joint ownership poses a stumbling block to the biosimilar companies’ efforts to enter areas that overlap with Bojian
.
Its acquisition of Bojian’s equity will help diversify Samsung Biopharma’s product lineup and consolidate Samsung Biopharmaceuticals.
Contract manufacturing business
.
"