Timeline of M & A: a brief history of the expansion of cro enterprises in China, and how does Wuxi apptec and tiger medicine "eat fat"

2017 is a memorable year in the history of China's cro development The domestic cro industry is going through the stage of market integration through listing and M & A This paper will summarize some typical M & A cases of domestic cro enterprises for the readers The emergence of Wen Yang Chao's cro industry originated from the division of labor in the global pharmaceutical R & D system Driven by the increasing cost of drug R & D, the long R & D cycle, the increasingly complex R & D process, the high risk of R & D and the increasing competition among pharmaceutical enterprises, it has laid the foundation for the prosperity of cro industry According to the statistics of Nanfang Institute, from 2011 to 2015, the global cro sales increased from US $21.3 billion to US $29.3 billion, with a compound annual growth rate of 8.25% It is expected that the global cro market will maintain a rapid growth trend in the next five years By 2020, the global cro market size is expected to reach US $42.1 billion, and the compound growth rate from 2016 to 2020 is about 7.42% Throughout the development process of international cro industry giants, none of them is not through M & A and cooperation, rapid expansion of core business, and active development of one-stop cro services For example, Kuntai, a leading global cro company Through continuous investment, merger and acquisition, from endogenous development to accelerated extension development, to development and innovation of business model, Kuntai has continuously expanded its core business and business model, so as to gradually become the undisputed super leader in the global cro field, forming four business pillars of gradually involving in business services, clinical research consulting, capital services, etc Similarly, in recent years, domestic cro industry giants such as Wuxi Wuxi Pharmaceutical Co., Ltd and tag Pharmaceutical Co., Ltd are also integrating innovation through investment and M & A The M & A case of Wuxi Pharmaceutical Co., Ltd Wuxi Pharmaceutical Co., Ltd is a leading open capability and technology platform company in the world It provides a full range of integrated laboratory R & D and production services from drug discovery, development to marketization in the fields of global pharmaceutical, biotechnology and medical devices Although Yang Qing, chief operating officer of Wuxi Pharmaceutical Co., Ltd., has publicly stated that "Wuxi Pharmaceutical Co., Ltd will not be a pharmaceutical enterprise in China, but only wants to provide more pharmaceutical enterprises with convenient R & D services", in recent years, Wuxi Pharmaceutical Co., Ltd has been focusing on upstream and downstream industries, and constantly layout the R & D service ecosystem through investment and acquisition In 2011, Wuxi apptec began to try various investment methods, not only through mergers and acquisitions, rapid development of its own business, in order to achieve the full layout of R & D service platform, but also established a venture capital fund, relying on industrial resources, to invest in innovative drug R & D enterprises Today, Wuxi apptec is not only a well-known and powerful R & D service company By the end of 2016, Wuxi apptec has invested about 20 projects, mainly technology and R & D projects, mainly in China and the United States, and its venture capital company Yucheng capital has invested in 16 pharmaceutical enterprises At the beginning of this year, Wuxi apptec announced the acquisition of HD Biosciences (HDB), a pre clinical drug R & D outsourcing company This is an enterprise providing a series of preclinical drug R & D services, such as drug target validation, active compound identification, lead chemical discovery, in vivo pharmacology research, etc After the merger and acquisition, Huiyuan biology became a wholly-owned subsidiary of Wuxi apptec group At the same time, with the help of this acquisition, Wuxi apptec can further enhance its drug R & D capabilities from target validation to lead chemical discovery and optimization, and further improve and expand the integrated R & D service platform Case of merger and acquisition of tiger pharmaceutical Hangzhou tiger Pharmaceutical Technology Co., Ltd is a contract research organization (CRO) focusing on providing professional services for the whole process of clinical trials for new drug research and development, established in December 2004 At present, tag pharmaceutical has developed into 33 subsidiaries, with global service outlets in 60 major cities in mainland China, Hong Kong, Taiwan, South Korea, Japan, Malaysia, Singapore, India, Australia, Canada, the United States and other places, with more than 3200 international professional teams, and has successfully carried out more than 920 clinical trial services for more than 600 customers around the world, Known as "innovative cro" It's no accident that tag Pharma can stand out from many local cro companies In addition to focusing on the cultivation and development of talents and international market, tag Pharma has always had a very clear and forward-looking strategic layout, which is also conducive to the rapid development of tag pharma In recent years, we can see the strategic consideration of tiger pharmaceutical's development and layout in cro field from its main acquisition behavior In November 2008, tag Pharma acquired 50.56% of the shares of mestar and obtained high-quality assets in statistical analysis and data management of clinical trials of mestar; in October 2009, tag Pharma acquired 49.44% of the shares of mestar, improving the company's main business capacity, expanding the high-end customer base and integrating customer resources; In May 2014, tag Pharma indirectly controlled 51% of the equity of Beijing kanglihua, which made the company's main business form a beneficial supplement and improved its comprehensive service ability to customers; in September 2014, tag Pharma acquired 55% of the equity of Shanghai Shengtong to improve the company's pharmaceutical supply chain management; In March 2015, tag Pharma acquired 30.16% of Fangda Pharma's shares, strengthened the company's position in the international market, and effectively helped its customers to quickly promote their products to the international market; in June 2015, tag Pharma acquired 100% of the shares of Beijing Renzhi, further strengthened the company's cro production platform and service chain, and served the company's cro ecosystem; In September 2015, tag Pharma acquired 98.14% of the shares of dreamcis in South Korea, expanded the company's layout in the Asia Pacific region and accelerated the development of the Asia Pacific region; in March 2016, tag Pharma acquired the local medical device cro enterprise, Jietong Teri In addition to Wuxi apptec and tag Pharma, Fang en Pharma completed the complete acquisition of imedglobal through its overseas branch fmdk & L, and Boji Pharma acquired Humphries pharmaceutical consulting to expand its North American business.