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Cancelling subsidiaries, selling equity, selling technology.
.
.
These actions are not uncommon in the pharmaceutical industry
.
In 2021, pharmaceutical companies including Renfu Medicine, Betta Pharmaceuticals, Dong'e Ejiao, Yan'an Bikang and other pharmaceutical companies have successively sold their equity, assets and their properties
.
In 2022, this phenomenon will continue, and a large number of pharmaceutical companies have joined the team of selling equity and closing subsidiaries
.
For example, on February 16, Buchang Pharmaceutical issued an announcement on the cancellation of a wholly-owned subsidiary
.
Based on the current actual operating conditions and follow-up business development plans, the company decided to cancel Zhongxin Shunfa in order to optimize resource allocation and organizational structure, reduce management costs, and improve operational management efficiency
.
The latter's main business scope includes medical research and experimental development, etc.
, and has not carried out actual business activities since its establishment
.
On January 29, VTR announced that it planned to sell its 74.
8057% stake in Hunan Xinhexin Biopharmaceutical Co.
, Ltd.
, 100% stake in Hunan Keyixin Biopharmaceutical Co.
, Ltd.
and Henan Lihua Pharmaceutical Co.
, Ltd.
100%.
% equity
.
After the completion of this transaction, it means that the company will divest all assets related to the biopharmaceutical business
.
On January 26, Shapuaisi Pharmaceutical announced that its subsidiary, Qiangsheng Pharmaceutical (Jilin), was sold to Yue's Pharmaceutical at a delisting price of 82 million yuan
.
It is reported that the subsidiary was acquired in 2015 by the former actual controller of Sharp Aisi through a non-public offering, and its main business is the production of Chinese patent medicines
.
Not only domestic pharmaceutical companies, including multinational pharmaceutical companies, there are also rumors of divesting and selling assets
.
For example, in mid-February, some industry sources said that Sandoz, a generic drug company owned by Novartis, may be sold to private equity firms Blackstone Group and Carlyle Group for $25 billion.
If the acquisition is successful, it will become a generic drug or even the entire pharmaceutical company An important deal in industry M&A
.
Novartis’ 2021 fiscal year annual report shows that the company will achieve a net profit of US$24.
021 billion in 2021, a year-on-year increase of 197.
58%; operating income will be US$52.
877 billion, a year-on-year increase of 5.
97%
.
But Sandoz's performance has not been satisfactory
.
Sandoz’s third quarter report for 2021 showed that revenue in the third quarter was $2.
4 billion, down 2% year-on-year
.
This is in line with Novartis' performance outlook for 2022 that "sales of innovative drug business are expected to grow at a single-digit rate, and Sandoz's generic drug business is expected to be flat with the previous year" or there may be a gap
.
In addition, Novartis also mentioned in the financial report that the price of generic drugs under competition fell, resulting in a negative growth of 9%
.
In recent years, Novartis, which has worked to become a pharmaceutical company focused on innovation, has spun off Alcon, its ophthalmology business, in 2019
.
In November 2021, Novartis and Roche signed a deal worth $20.
7 billion to sell the Roche shares they had held since the beginning of this century to each other
.
In this regard, the industry believes that if Novartis spins off Sandoz, it is also an adjustment based on the company's development strategy
.
For another example, in mid-January, Daiichi Sankyo announced that it would close all of its Plexxikon operations in South San Francisco, and Plexxikon would operate until the end of March
.
The subsidiary, acquired by Daiichi Sankyo in 2011 for US$935 million, has two marketed anticancer drugs and six drugs that have already started clinical trials
.
It is reported that Daiichi Sankyo's action is to focus on the development of three major ADC products
.
In general, transactions in the pharmaceutical industry are still frequent this year
.
The industry believes that in the domestic market, with the deepening of medical reform, pharmaceutical companies are accelerating the divestment of non-core businesses and focusing on the main business is the general trend.
"Only by optimizing the allocation of resources and focusing more on core businesses can further reduce operational risks
.
" Disclaimer: in Under no circumstances shall the information or opinions expressed in this article constitute investment advice to anyone
.
.
.
These actions are not uncommon in the pharmaceutical industry
.
In 2021, pharmaceutical companies including Renfu Medicine, Betta Pharmaceuticals, Dong'e Ejiao, Yan'an Bikang and other pharmaceutical companies have successively sold their equity, assets and their properties
.
In 2022, this phenomenon will continue, and a large number of pharmaceutical companies have joined the team of selling equity and closing subsidiaries
.
For example, on February 16, Buchang Pharmaceutical issued an announcement on the cancellation of a wholly-owned subsidiary
.
Based on the current actual operating conditions and follow-up business development plans, the company decided to cancel Zhongxin Shunfa in order to optimize resource allocation and organizational structure, reduce management costs, and improve operational management efficiency
.
The latter's main business scope includes medical research and experimental development, etc.
, and has not carried out actual business activities since its establishment
.
On January 29, VTR announced that it planned to sell its 74.
8057% stake in Hunan Xinhexin Biopharmaceutical Co.
, Ltd.
, 100% stake in Hunan Keyixin Biopharmaceutical Co.
, Ltd.
and Henan Lihua Pharmaceutical Co.
, Ltd.
100%.
% equity
.
After the completion of this transaction, it means that the company will divest all assets related to the biopharmaceutical business
.
On January 26, Shapuaisi Pharmaceutical announced that its subsidiary, Qiangsheng Pharmaceutical (Jilin), was sold to Yue's Pharmaceutical at a delisting price of 82 million yuan
.
It is reported that the subsidiary was acquired in 2015 by the former actual controller of Sharp Aisi through a non-public offering, and its main business is the production of Chinese patent medicines
.
Not only domestic pharmaceutical companies, including multinational pharmaceutical companies, there are also rumors of divesting and selling assets
.
For example, in mid-February, some industry sources said that Sandoz, a generic drug company owned by Novartis, may be sold to private equity firms Blackstone Group and Carlyle Group for $25 billion.
If the acquisition is successful, it will become a generic drug or even the entire pharmaceutical company An important deal in industry M&A
.
Novartis’ 2021 fiscal year annual report shows that the company will achieve a net profit of US$24.
021 billion in 2021, a year-on-year increase of 197.
58%; operating income will be US$52.
877 billion, a year-on-year increase of 5.
97%
.
But Sandoz's performance has not been satisfactory
.
Sandoz’s third quarter report for 2021 showed that revenue in the third quarter was $2.
4 billion, down 2% year-on-year
.
This is in line with Novartis' performance outlook for 2022 that "sales of innovative drug business are expected to grow at a single-digit rate, and Sandoz's generic drug business is expected to be flat with the previous year" or there may be a gap
.
In addition, Novartis also mentioned in the financial report that the price of generic drugs under competition fell, resulting in a negative growth of 9%
.
In recent years, Novartis, which has worked to become a pharmaceutical company focused on innovation, has spun off Alcon, its ophthalmology business, in 2019
.
In November 2021, Novartis and Roche signed a deal worth $20.
7 billion to sell the Roche shares they had held since the beginning of this century to each other
.
In this regard, the industry believes that if Novartis spins off Sandoz, it is also an adjustment based on the company's development strategy
.
For another example, in mid-January, Daiichi Sankyo announced that it would close all of its Plexxikon operations in South San Francisco, and Plexxikon would operate until the end of March
.
The subsidiary, acquired by Daiichi Sankyo in 2011 for US$935 million, has two marketed anticancer drugs and six drugs that have already started clinical trials
.
It is reported that Daiichi Sankyo's action is to focus on the development of three major ADC products
.
In general, transactions in the pharmaceutical industry are still frequent this year
.
The industry believes that in the domestic market, with the deepening of medical reform, pharmaceutical companies are accelerating the divestment of non-core businesses and focusing on the main business is the general trend.
"Only by optimizing the allocation of resources and focusing more on core businesses can further reduce operational risks
.
" Disclaimer: in Under no circumstances shall the information or opinions expressed in this article constitute investment advice to anyone
.
