The integration of pharmaceutical M & A

Source: the state owned assets supervision and Administration Commission of the people's Republic of China issued relevant guidance on February 24, 2014, pointing out that the central enterprises should strengthen the internal resource integration to match the asset scale with the value creation ability, and withdraw the stock assets whose capital return is lower than the capital cost for a long time and has no development prospect Recently, the Shanghai United Property Rights Exchange reported that Wuxi huirun Pharmaceutical Co., Ltd and China Resources pharmaceutical investment Co., Ltd (hereinafter referred to as "China Resources pharmaceutical") intend to sell 93.6047% and 6.3953% of their respective shares in Shenzhen Sanjiu pharmaceutical chain Co., Ltd (hereinafter referred to as "Sanjiu chain") for a total price of 8.92 million yuan After the disclosure of the information, it can't help but remind people of the news that in 2009, 39 chain listed and transferred in Beijing property exchange at the transfer price of 1 yuan After the internal change of hands in 2011, Sanjiu chain was finally abandoned Some people in the industry commented that the integration of internal resources of enterprises will follow closely in the era of active M & A in the pharmaceutical industry It is generally believed that poor performance and bleak prospects or the fundamental reason why 39 chain was listed and transferred again In January this year, the state owned assets supervision and Administration Commission issued the guiding opinions on strengthening the value management of central enterprises with economic added value as the core, which pointed out that central enterprises should strengthen the internal resource integration to match the asset scale with the value creation ability At the same time, the stock assets whose return on capital is lower than the cost of capital for a long time and has no prospect of development should be withdrawn in sequence "China resources needs to pursue the maximization of growth rate In the past, it focused on the total revenue Although it is growing every year, in fact, the growth rate has not kept up with it, and the pace of performance growth has gradually slowed down." In the view of Xu Lingni, a researcher in the pharmaceutical industry of CIC, in recent years, China Resources has made frequent acquisitions, with a growing scale, and turned to Sanjiu chain For its internal integration, it is to abandon the business that has been dragging down the growth rate and concentrate on developing the business that maximizes capital gains Chen Chunhua, general manager of Shanghai Lianhua Fosun pharmacy chain operation Co., Ltd., who has long been concerned about the change of drug retail industry, also said in an interview with this newspaper that the current 39 chain has affected the overall return on investment of China Resources, and the reason for listing and transfer can be imagined The reporter tried to contact the relevant person in charge of China Resources pharmaceutical, but as of the time of publication, no response has been received In recent years, the development of drug retail market is gradually turning to low profit, and the fixed cost of opening a store is still rising Only scale competition can guarantee positive income, which requires a lot of capital investment "But for the diversification of large enterprises, capital investment in other aspects can produce greater benefits." Xu Lingni pointed out Analysts of M & a balance technology remind that when the new GMP certification deadline comes, there may be many small and medium-sized pharmaceutical enterprises listed for sale due to the high threshold of the new GMP This is a good time for large pharmaceutical enterprises to run again They can take the opportunity of M & A to directly obtain batch number and expand product line, save time cost and reduce R & D risk "However, the integrated management after receiving the order must keep up with the situation, otherwise, once the negative news such as drug safety incident is revealed, the overall image of the enterprise may be affected." "The diversification of enterprises should focus on the core competitiveness, so as to create value." In the interview, a senior manager of a large pharmaceutical enterprise in South China pointed out that from the current development trend, diversified operation should be based on the company's original value chain Whether it is to extend the control of raw materials channel upstream or to extend the control of sales channel downstream, it should be closely linked with the core competitiveness "If you are involved in too many fields and do not have relevance, you will not be able to share equipment, technology, management and other resources, and the increased input may not be able to achieve the desired output." The executive pointed out "From the second half of last year to now, I have contacted more rational investors than before." Mr Shi wankui, executive chairman of Beijing minzhigu management consulting company, said that compared with the past, investors focused on how to go public and expand the scale with M & A, now they will consider more from the perspective of long-term earnings On the one hand, the current legal environment is becoming tighter, the CSRC, the CBRC and other relevant institutions have issued stricter regulations, and investment needs to be more cautious; on the other hand, in the current capital market environment, the return of enterprises after listing and financing is not particularly clear, if they hold for a long time, it is also a burden for investors According to its disclosure, at present, there are funds focusing on equity investment that are also considering long-term strategic investment of transformation.