Pharmaceutical mergers and acquisitions boom continues the pharmaceutical industry reshuffle

, this year will be a big year for pharmaceutical mergers and acquisitions!▍ drug mergers and acquisitions boom continued2019 is not long before the beginning of the year, the major pharmaceutical companies have begun to "buy and buy."On January 3rd, Shishi Shiguibo announced a $74bn acquisition of New Base, on January 7th Lilly announced that it would buy biopharmaceutical company Loxo Oncology in cash for about $8bn, and on January 8th Takeda pharmaceuticals announced the completion of its acquisition of Shire at a total cost of about $62bn.In recent years, it is not uncommon for multinational pharmaceutical companies to buy and buy. With the expiration of patents of multinational pharmaceutical companies, new drug research and development difficulties increased, the transformation into a way out, some increase investment in biomedicine, some directly through mergers and acquisitions to make up for their own short board.Looking at domestic pharmaceutical companies, in recent years, acquisitions, mergers and acquisitions have also begun to heat up.According to incomplete statistics, in the first seven months of 2018, 96 A-share listed pharmaceutical companies carried out 167 mergers and acquisitions, with a total transaction value of 38.7 billion yuan. In the second half of 2018, pharmaceutical companies still did not stop the pace of mergers and acquisitions. Shanghai Pharma's 915 million yuan acquisition of 26.34 percent of Tianpu, China Resources Shuanghe's acquisition of Xiangzhong Pharmaceuticals, Yuanda Pharmaceutical's overseas acquisition of oncology pharmaceutical company Sirtex, Yifeng's 133 million acquisition of Jiangsu Citizen University Pharmacy, etc.At the beginning of 2019, Jiangzhong Pharmaceuticals announced that it would acquire a 51% stake in Sanghai Pharmaceuticals and Jisheng Pharmaceuticals for about 380 million yuan, while Inner Mongolia Jingxin, a wholly owned subsidiary of Zhejiang Jingxin Pharmaceuticals, announced that it intended to buy 86.67 percent of Yuanjin Pharmaceuticals held by Jingxin Holdings for 14.1826 million yuan.▍ the pharmaceutical industryas early as 2017, the General Office of the State Council issued "on further reform and improvement of drug production and circulation policy." Clearly put forward: " to support the merger and reorganization of pharmaceutical production enterprises, simplify the cross-regional transfer of products within the Group to market approval procedures, cultivate a number of internationally competitive large enterprise groups, improve the concentration of the pharmaceutical
industry. "" to break the market segmentation of pharmaceutical products, local protection, promote drug distribution enterprises
cross-regional, cross-ownership mergers and reorganization, cultivate large-scale modern drug circulation backbone enterprises. "" to encourage drug distribution enterprises wholesale and retail integrated operation. We will promote the management of
of retail pharmacies, and improve the retail chain rate.As of September 30, 2018, the amount of mergers and acquisitions of domestic pharmaceutical companies amounted to 161.2 billion yuan, out of a total of 563;Comparative data show that the overall scale of domestic pharmaceutical mergers and acquisitions in 2013-2017 showed an expansion trend, from 188 to 664 times, involving an amount of 244.3 billion yuan; It can be seen that the overall scale of pharmaceutical mergers and acquisitions is expanding, but the unit price of mergers and acquisitions is decreasing.
(Source: China Federation of Pharmaceutical Logistics Research Center)In 2018, the most active pharmaceutical mergers and acquisitions of enterprises are China Resources Group, Tonghua Jinma, Kangmei Pharmaceuticals, Meiying Health, Ji Pharmaceutical Holdings, Bikang shares.
(Source: Sino-Chinese Pharmaceutical Logistics Branch Research Center)Some industry experts believe that with tax reform, as well as consistent evaluation, with the continuous promotion of volume procurement, many policies under the multiple effects of the pharmaceutical enterprises in the shuffle, the number of domestic pharmaceutical companies will even be reduced by half.It is worth mentioning, however, that the vast majority of small and medium-sized pharmaceutical enterprises will not actually disappear, but through mergers and reorganizations and other means into large pharmaceutical enterprises. (
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