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    Home > Medical News > Medical World News > The wave of mergers and acquisitions in the pharmaceutical industry is surging, and the reasons are more diversified

    The wave of mergers and acquisitions in the pharmaceutical industry is surging, and the reasons are more diversified

    • Last Update: 2022-08-30
    • Source: Internet
    • Author: User
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    [Pharmaceutical Network Market Analysis] Entering August, mergers and acquisitions in the pharmaceutical field were significantly active, and many A-share pharmaceutical companies launched merger and acquisition plans
    .

    For the reasons for listed companies to initiate mergers and acquisitions, the industry said that it is more diverse
    .

    According to relevant statistics, as of August 9, there have been 175 mergers and acquisitions in the domestic biopharmaceutical industry since the beginning of this year, with a total value of 48.
    6 billion yuan
    .

    In 2020, there were 198 mergers and acquisitions with a total value of 78.
    968 billion yuan; in 2021, there were 308 mergers and acquisitions with a total value of 251.
    625 billion yuan
    .

    Among them, since August 2022, mergers and acquisitions in the pharmaceutical field have been significantly active, and almost every two days, A-share pharmaceutical listed companies will announce mergers and acquisitions
    .

    For example, on the evening of August 16, Jianmin Group announced the acquisition of a secondary hospital
    .

    On August 10, Huadong Medicine issued an announcement on the acquisition of 60% equity of Wuhu Huaren Technology Co.
    , Ltd.
    by means of capital increase and equity transfer
    .

    In August, China Resources Shuanghe successively acquired the equity of Shenzhou Biology and Dongying Tiandong Pharmaceutical, with a total acquisition amount of nearly 810 million yuan
    .

       In addition, on August 6, Shenzhen Microchip Biotechnology announced to increase its capital to acquire part of the equity of Chengdu Microchip Pharmaceutical Co.
    , Ltd.
    with an acquisition amount of 260 million yuan; on August 3, Guangdong Chenghui Medical announced to increase its capital by 15 million yuan to acquire Guangdong Koneo Medical.
    Part of the equity of the investment company; on August 3, TusHoldings announced the purchase of 100% equity of Guangdong Xiantong Pharmaceutical Co.
    , Ltd.
    for 220 million yuan
    .

       It is reported that the reasons for mergers and acquisitions in the pharmaceutical industry are more diversified, such as the acquisition of innovative products and innovative technologies for the purpose of supplementing the company's product line; there are also cases of intention to lengthen the industrial chain, improve the industrial layout and even enter new sub-industries.
    Case analysts who have seized the opportunity to expand pipelines, develop cutting-edge technologies, and borrow ships to explore international markets pointed out that compared with other industries, the pharmaceutical industry has several characteristics.
    First, the supervision of the industry is relatively strong.
    The threshold for people is relatively high, and the third is that effective production resources are relatively concentrated
    .

    In addition, drug R&D, especially the R&D of innovative drugs, has the characteristics of long R&D cycle, high R&D cost, high R&D talent intensity, and relatively high product failure rate
    .

       Based on the above characteristics, if pharmaceutical companies want to expand their scale and product lines, the cost of self-construction is relatively high.
    M&A is a more effective way to obtain resources.
    At the same time, this is also a trend that can improve industry efficiency, save industry repeated research and development costs, and comply with industry development rules.

    .

       The data shows that in the statistics of mergers and acquisitions in the past three years, the biomedical industry is the industry second only to machinery and equipment.
    The number of mergers and acquisitions has reached 901, involving an amount of 171 billion yuan, accounting for 8.
    26%.
    The proportion is 8.
    46%
    .

    According to the industry, the biopharmaceutical industry itself is a business model that focuses on R&D and technology.
    With the acceleration of scientific and technological progress in the pharmaceutical industry, mergers and acquisitions have become an industry development trend
    .

       In addition, some people said that 2022 is the first year for China's pharmaceutical integration and mergers and acquisitions
    .

    "In the past, some traditional pharmaceutical companies had a strong desire to control, and hoped that innovative products could be incubated internally.
    When they fell in love with a project, they wanted to hire the person in charge to be the chief scientist of the research institute
    .

    This year is different.
    Everyone is more open-minded.
    Breaking the circle and integrating
    .

    " An industry insider said
    .

       Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
    .

     
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