Pharmaceutical M & A in 2016: more than 40 cases, about 180 billion, with a new high volume and amount

Source: 21st century economic report 2017-01-13 pharmaceutical M & A in 2016, showing the characteristics of large number, high amount, great policy impact, popular public hospitals, high degree of overseas attention In 2016, pharmaceutical M & A is still in full swing In this year, there have been many mergers and acquisitions of hospitals, pharmaceutical companies, pharmacies, etc behind these are the reform policies of drug approval system, such as clinical self-examination, generic drug consistency evaluation, drug priority review, and many reform policies of the pharmaceutical industry, such as medical insurance fee control, medical insurance catalog adjustment, etc A number of industry insiders pointed out that in 2016, the number and scale of M & A in the pharmaceutical industry renewed its history Yang Lei, executive partner of gaotejia, told 21st century economic news that according to the public announcement of listed companies, gaotejia Research Report and other statistics, there were more than 400 mergers and acquisitions in the pharmaceutical and health industry in 2016, with a total amount of more than 180 billion yuan "In 2016, many M & as were still for the extension of industrial chain, such as China Resources Sanjiu's acquisition of Shenghuo pharmaceutical; in terms of amount, backdoor listing or internal resource integration accounted for a large proportion, such as Jialin pharmaceutical, China cord blood bank and other backdoor assets with a valuation of more than 5 billion yuan; in terms of overseas M & A, from September 2016 Since the beginning of this month, due to the introduction of some financial policies by the state, it is less than that in the first half of the year; and the merger and acquisition of internet medical services has also been greatly reduced " Yang Lei pointed out As for the trend of M & A, Huatai Securities research report pointed out that due to the increasing demand of residents and the strong support of national health reform and policies, the growth rate of industry income and net profit has achieved high growth, which will continue in the future Jin Yi, partner of Roland Berger consulting, pointed out to the 21st century economic report that in 2017, the general trend of M & A in the pharmaceutical industry remained unchanged, and M & A in various subdivisions will still be very active, such as small and medium-sized pharmaceutical enterprises will be gradually specialized or acquired, and the integration of chain drugstores will be further intensified Although there are not too many institutional statistics and statistical caliber at present, from various public information, M & A in the field of medicine and health in 2016 is very busy For example, the data of Qingke from January to November 2016 shows that there are 235 PE investments, 425 VC investments and 151 M & as (according to the acquired party); the annual report on investment and financing of pharmaceutical industry (case search time: October 1, 2015 to September 30, 2016) shows that there are 366 VC / PE investments and 408 M & as According to the public announcement of listed companies, Research Report of gotega and other statistics, in 2016, more than 400 mergers and acquisitions in the pharmaceutical and health industry amounted to more than 180 billion yuan The number and scale of M & a far exceed the previous data of CFDA South pharmaceutical Economic Research Institute From January to October 2015, the amount of M & A of Chinese pharmaceutical enterprises reached 100 billion yuan, an increase of about 80% year-on-year The number of announced M & A cases reached 260, of which about 10% were overseas M & A according to other data, 259 M & A transactions occurred in the pharmaceutical industry in 2014, an increase of 101% year-on-year The volume of M & A transactions was 80.8 billion, up 131% year on year Some people in the industry divide the institutions investing in the pharmaceutical industry into six categories: the pharmaceutical team of old mixed investment institutions, professional medical and health funds, investors representing industrial capital, state-owned background investment institutions, insurance funds, and other new entrants A number of PE told the 21st century economic reporter that they are optimistic about the development of the medical and health industry, which is the direction advocated by the state, and the return in the medical field is relatively high Many directors of listed companies say that M & A can extend the industrial chain and improve the market value For example, large pharmaceutical companies, especially some listed companies, can expand the market scale and complete the layout of the industrial chain From the perspective of industry segmentation, Jin Yi believes that the integration of chain drugstores is further intensified, and with the implementation of "medicine separation" and "hierarchical diagnosis and treatment", the scale of chain drugstores and large chain enterprises will continue to expand; small and medium-sized pharmaceutical enterprises will gradually be specialized or purchased; in the aspect of Chinese patent medicine industry, for the purpose of "standardization and post market re evaluation" The policy requires that the industry continue to merge and enter the fields of pharmaceutical chain, big health and chemical medicine or biopharmaceutical According to Yang Lei, a large amount of M & A, most of the cases in 2016 were backdoor listing or internal resource integration For example, Tianshan textile, with the highest transaction amount, acquired Jialin pharmaceutical, with a transaction amount of 8.36896 billion yuan Jialin Pharmaceutical Co., Ltd is a domestic enterprise of cardio cerebrovascular and anti-tumor drugs, which is the leader in the field of reducing blood lipid Tianshan textile is a group company with mining industry and wool textile industry as its main businesses The actual controller is Xinjiang SASAC After the completion of the transaction, 100% equity of Carlin pharmaceutical will be put into the listed company, and the door to the capital market will be successfully opened According to the cases disclosed this year, backdoor assets such as Jialin pharmaceutical and China cord blood bank are all valued at more than 5 billion yuan, and the scale of backdoor transactions is growing Although the backdoor supervision has been further tightened this year, the enthusiasm for medicine backdoor has not decreased From the perspective of M & A and restructuring transaction scheme design, pharmaceutical enterprises with an asset valuation of more than 5 billion yuan have outstanding operation and profitability The actual controller and management team of the company have higher requirements for the company's control right and stronger willingness to be listed independently In addition, the replacement and integration of internal resources have become an important part of M & A cases The typical representative is modern pharmacy In May 2016, Hyundai pharmaceutical released the report on issuing shares and paying cash to purchase assets and raise supporting funds and related party transactions (Draft) It plans to acquire 12 assets with a total value of about 7.7 billion yuan (the post financing plan will be reduced by 1.8 billion yuan) Mr Shi lichen, founder of the third-party medical service platform maxwelle, told the 21st century economic reporter that the business segment of Sinopharm group has been basically clear In accordance with the idea of "merger of similar items", resource integration within the group can make it easier for enterprises to make efforts in the subdivision field "While resolving the problem of competition between listed companies and the group, the channel of capital operation of the group has been straightened out and the space for integration has been opened." Through M & A, large pharmaceutical companies, especially listed companies, can expand the market scale, complete the layout of industrial chain, optimize the income, profit rate, earnings per share and other indicators, and further consolidate the market position For example, on July 26, 2016, Cr 39 plans to acquire 100% equity of Kunming Shenghuo Pharmaceutical (Group) Co., Ltd with RMB 1.89 billion, which will help extend the industrial chain of Cr 39 According to the data, Shenghuo Pharmaceutical Group mainly produces and sells oral cardio cerebrovascular drugs Its main products include Xuesaitong Soft Capsule and Huangtengsu soft capsule It has a certain foundation in chronic disease management It also has a production scale and technology leading soft capsule production line in China According to wind information statistics, there were 279 M & A cases of listed pharmaceutical companies in 2015, including 197 cases of horizontal integration, 10 cases of vertical integration, 9 cases of financial investment and capital operation, and only 2 cases of business transformation; from 2016 to now, there are 70 cases of M & A of listed pharmaceutical companies, 60 cases of horizontal integration, 2 cases of vertical integration, and only 1 case of business transformation Generally speaking, most of the M & A in the pharmaceutical industry is intra industry M & A, and there are few cross-border M & A cases Public hospitals have become a hot target in the M & A of the medical and health industry in 2016, and public hospitals are also hot spots to be pursued In the past two years, the merger and acquisition of public hospitals has been growing steadily, and the main hospitals to be merged are general Class-A hospitals and specialized hospitals In 2016, Jimin pharmaceutical, Hainan Haiyao, Kangmei pharmaceutical and other pharmaceutical companies took the hospital According to the public information such as the announcement of listed companies, the report of consulting companies, and the data of M & A projects and amounts sorted out by think tanks in the medical community, 48 hospital M & A projects were completed in 2016, involving 13.45 billion yuan According to the latest statistics, in August 2016, the number of public hospitals across the country decreased by 474 compared with the same period last year, with an average monthly decrease of nearly 40 It is estimated that in 2016, the number of public hospitals in China will be reduced by about 600 In the previous five years, the number of public hospitals decreased by only 156 per year The reason why the number of public hospital mergers and acquisitions has increased is that Jin Yi analyzed to the 21st century economic reporter With the promotion of a series of medical reform policies, the multi hospital property right structure is being established, and the social capital is also actively distributed The next step of merger and acquisition may be "non core public hospitals within the system", "public hospital group is real through merger and acquisition"“ Domestic enterprises continue to acquire overseas business or introduce overseas advantage service brands ", such as high-tech and professional medical, rehabilitation and nursing, etc Public hospitals have important strategic significance for many enterprises, such as laying a solid foundation for their own future development of medical derivative business, such as "medical support" of pension business, so there are many listed companies layout public hospitals, including Peking University Medical, China Resources medical, Jinling pharmaceutical, Kangtai life insurance, Guangyao Baiyunshan, etc In April 2016, Jiangsu Aoyang Health Industry Investment Holding Co., Ltd., a wholly-owned subsidiary of Aoyang technology, acquired the remaining equity of Aoyang hospital with RMB 121 million, which is also one of the strategies for Aoyang technology to further realize the strategic transformation of the company On December 15, 2016, Zhejiang Jimin Pharmaceutical Co., Ltd., a large infusion company, purchased 80% of the equity of Ezhou Eryuan with a total amount of RMB 208 million, aiming to "further expand the company's medical service business, create a new profit growth point and enhance the company's profitability." Emerging markets are heating up the enthusiasm of overseas M & A in early 2016, which also continued the enthusiasm of 2015 As of July 2016, there were 16 overseas M & A cases with an investment amount of nearly 10 billion US dollars "Since the third quarter of 2016, under the influence of national policies on capital guidance and other policies, overseas M & A of medicine has slowed down relatively." From the case of M & A in 2016, many pharmaceutical companies have focused on emerging markets such as India For example, on July 29, 2016, Fosun Pharmaceutical plans to purchase about 86.08% of the equity of gland Pharma Limited through its holding subsidiary, including the contingent consideration of no more than 50 million USD paid by the acquirer according to the listing and sales of enoxaparin in the United States Gland is the first manufacturer of injection drugs approved by FDA in India In recent years, the pace of M & A of global pharmaceutical companies is speeding up, and the targets from emerging markets are more and more concerned by investment groups An industry analyst pointed out that this change was mainly due to the fact that foreign quantitative easing and low-cost credit pushed up the target prices of mature markets in Europe and the United States, and that there were fewer and fewer suitable investment opportunities However, emerging markets, due to the reasons such as US dollar interest rate hike, US economic recovery and commodity price drop, led to the undervaluation of asset prices and the increase of investment opportunities The reason why overseas M & A is gradually active is that Jin Yi analyzed to the 21st century economic reporter, which is closely related to the current development of China's pharmaceutical industry China's pharmaceutical policies are frequent, a group of incomplete statistics shows that in 2015, 531 national level documents were issued in the pharmaceutical industry, and 1488 documents were issued in 2016 Under the background of frequent policy issues, rising threshold and cost control, the profit space of pharmaceutical enterprises has been greatly reduced, and 2015 and 2016 are generally regarded as the bottom of the pharmaceutical industry in the industry This leads to the profit space of pharmaceutical enterprises