Policy Year: A group of pharmaceutical companies are sold assets by large companies

2019 is a big year for policy, with a full expansion of volume procurement, the second batch of varieties has been determined, local health insurance access has been cancelled, a batch of drugs transferred out of health insurance ... Every pharmaceutical company is deeply affected; whether it's a large public company or a small pharmaceutical company, it's trying to make changes to cope with the tide of policy.▍ batch of pharmaceutical companies, wasrecently, Jiangsu Provincial Drug Administration issued a notice announcing that Yangzhou Pharmaceuticals by Jiangsu Union Ring Pharmaceuticals absorbed merger.It is understood that, after a written application by Yangzhou Pharmaceutical Co., Ltd., Yangzhou Pharmaceutical Co., Ltd. was absorbed and merged by Jiangsu Lianhuan Pharmaceutical Co., Ltd., Jiangsu Provincial Drug Administration in accordance with the provisions to withdraw the company's "drug production license", and write off.In addition, on January 9 and 10, the Hubei Provincial Drug Administration issued two announcements, Hubei Xinyi Pharmaceutical Co., Ltd. was included in the State Pharmaceutical Holding Xinyi (Hubei) Pharmaceutical Co., Ltd., and Wuhan Qingda Yuanzhi Pharmaceutical Co., Ltd. was included in Wuhan Baisen Pharmaceutical Co., Ltd.It is understood that Hubei Xinyi Pharmaceutical Co., Ltd., Wuhan Qingda Yuanzhi Pharmaceutical Co., Ltd. in line with the relevant provisions and requirements of the merger and reorganization of pharmaceutical distribution enterprises in Hubei Province, allowing the above two enterprises to apply for cancellation of the "Drug Business License" and "Drug Business Quality Management Standard Certification."At the same time, the newly declared State Pharmaceutical Holdings Xinyi (Hubei) Pharmaceutical Co., Ltd., Wuhan Bayson Pharmaceutical Co., Ltd. "Drug Business License" and "Drug Business Quality Management Practice Certification Certificate."Some industry veterans have pointed out to Seberan: We now have more than 4000 pharmaceutical companies, the number will be greatly reduced in the future.Based on the distribution of income and quantity between enterprises in the pharmaceutical industry, the proportion of pharmaceutical enterprises with revenues of less than 500 million yuan is as high as 81.58 percent, while the number of pharmaceutical companies with revenues of more than 10 billion yuan is only 0.29 percent.China's pharmaceutical enterprises as a whole small scale, slow accumulation, low technical content is an important reason. Compared with the U.S., the top 20 largest generic drug providers supply 95 percent of the U.S. market, with a high concentration.In response to policies such as the 4-plus-7 and two-vote systems, mergers and acquisitions between pharmaceutical companies have become the main way to make a living: through mergers and acquisitions to find new profit growth points.If generics companies want to transform and upgrade, they will either do large-scale mergers and acquisitions or strengthen research and development. For a group of smaller generic companies, generic drugs are different from innovative drugs, price reduction is an inevitable trend, to have cost advantage is essential.The data show that the core of cost advantage is supply chain advantage, generic pharmaceutical enterprises should have the advantage of scale, can further reduce costs through the scale effect, and need more approval to facilitate the procurement of downstream enterprises and resist more and more fierce market competition.Previously, the industry paid more attention to the large-scale mergers and acquisitions of listed companies, but the development situation of unlisted pharmaceutical enterprises, it is also worth tracking and analysis, the announcement of Jiangsu Province and Hubei Province, on the performance of small generic pharmaceutical companies to upgrade efforts and actions.▍ Large listed companies, sale of assetsin small generic pharmaceutical companies through mergers and acquisitions to hold the group heating at the same time, listed pharmaceutical companies because of the size of too large, every decision needs to be handled carefully, more to adjust marketing business, shrink research and development pipeline, reduce costs, sell assets to live capital and other ways.According to industry analysts, pharmaceutical companies completed 39 asset sales in 2019, up from 111 in 2017-2019. Since December, Haizheng Pharmaceuticals, Haier Bio, Manfu Pharmaceuticals, Tianshili, Four Rings Biology, Shuangcheng Pharmaceuticals, Foci Pharmaceuticals and many other well-known pharmaceutical companies have issued asset sales announcement Haizheng Pharmaceuticals announced on January 7, the company is located in Taizhou City, The Grand Hyatt Building A block of the auction success, a total of 1.82 million yuan.Earlier, Haizheng Pharmaceuticals said it had terminated a total of 20 research and development projects because of funding, and that the company's research and development covered a wide range of product areas, including raw materials, generics, biologics and innovative drugs.On December 30, Renfu Pharmaceuticals announced that it would sell real estate in the new hospital area of Zhongxiang People's Hospital to Xingrui Assets. The cumulative construction investment of the project is about 1 billion yuan, and the total sale price will be determined according to the audit results of the final accounts of the project. According to preliminary estimates, the investment income of the project is about 40 million yuan.Previously, people fu medicine is intended to enhance their strength in medical services through the acquisition of hospitals, failed to achieve the goal, but to put pressure on their own business. The industry has a point of view evaluation: this time the sale of hospital-related assets, is also seen as a return to the past, focusing on the development of the main industry.On December 16th, Tiansli announced that it intended to sell all of its stake in Tiansi Marketing Company and had signed a Framework Agreement with Chongqing Pharmaceutical (Group) Co., Ltd. on related matters.According to the announcement, through the sale of the assets, Tiansli will further focus on the pharmaceutical industry, continue to promote the coordinated development of modern Chinese medicine, biological medicine and chemical drugs, and build innovative pharmaceutical research and development clusters.2019 is a big year for policy, with the full expansion of volume procurement, the second batch of varieties has been determined, local health insurance access has been cancelled, a batch of drugs transferred out of health insurance ... Every pharmaceutical company is deeply affected; whether it's a large public company or a small pharmaceutical company, it's trying to make changes to cope with the tide of policy. (Cypress Blue)