Under the background of the transformation and upgrading of the pharmaceutical industry, the "slimming" of domestic and foreign pharmaceutical companies will accelerate

Recently, Sanofi signed an agreement
with German CDMO Adragos Pharma.
Under the agreement, Sanofi will sell its Japanese production base (Kawagoe Pharmaceutical Plant) to Adragos, while Adragos will provide long-term supply
to Sanofi in the Japanese market.
For the next 5 years, Adragos will continue to produce products for Sanofi and become a strategic partner of Sanofi in the Japanese market, details of which have not yet been disclosed
.
With this transaction, Adargos will take over a 182,000-square-foot facility and all of its employees, with further expansion
.
In terms of business expansion, Adargos plans to find new customers
at its domestic production sites in Europe, North America and Japan.
At the same time, this will further enhance Adragos' production capacity in solid dosage and injectables, making it more competitive
in the secondary market.
In fact, in recent years, Sanofi is actively working hard to "slim down" through asset sales and layoffs in order to implement the "play to win" strategy proposed in 2019
.
It is a plan from 2020 to 2025 that focuses its business on key R&D areas
such as immuno-inflammatory, rare diseases, oncology, vaccines, etc.
It is understood that in July, Sanofi reached an agreement with Neuraxpharm to sell 17 drugs to Neuraxpharm
.
In June, Sanofi also sold its longtime partner Regeneron's exclusive worldwide rights to the cancer drug Libtayo for $900 million.
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The industry believes that Sanofi's "slimming" is the embodiment
of its focus on its core business.
In fact, through the sale, or spin-off, or licensing of non-core products, Sanofi is not the only company
focusing on the development of core business.
Since the beginning of this year, a number of multinational pharmaceutical companies have also sold some non-core businesses
.
For example, on October 9, Bayer officially completed the sale of its environmental science professional business to international private equity firm Cinven
.
The business generated sales of approximately EUR 600 million in 2021 and was purchased for USD 2.
6 billion (EUR 2.
6 billion).

Prior to this, Sandoz also sold its pharmaceutical factory
in China.
It is understood that Kyushu Pharmaceutical will invest 185 million yuan in the CDMO (contract customized R&D and production) preparation project of Siwei Pharmaceutical to acquire 100% of the equity of Sandoz (China) Zhongshan Preparation Factory and increase the capital, of which 15.
1 million US dollars will be used to acquire equity
.
In addition, at the end of March, Daiichi Sankyo transferred to Chongqing Yaoyou the production and sales rights of Chinese mainland colabital preparation and all the equity of the production company that produced the preparation.
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It is worth mentioning that in order to save costs and focus on the main business, since the beginning of this year, there have been many
enterprises selling "assets" in the domestic pharmaceutical and medical fields.
On October 13, Tibet Duorui Pharmaceutical Co.
, Ltd.
issued an announcement
on the cancellation of its holding subsidiary.
According to the content of the announcement, in order to improve the company's asset management efficiency, optimize the organizational structure and reduce management costs, Tibet Duorui Pharmaceutical Co.
, Ltd.
recently cancelled its holding subsidiary, Gongan County Renkang Pharmaceutical Technology Co.
, Ltd.

It is understood that in order to reduce costs, in fact, Duorui Pharmaceutical canceled a wholly-owned subsidiary - Hubei Benyang Pharmaceutical Co.
, Ltd.
in May this year On September 22, Luoxin Pharmaceutical announced that it planned to transfer 70% of the equity of Modern Logistics to Shanghai Pharmaceutical Holdings
for 415 million yuan.
After the transfer, the company will only hold a 30% stake
in Modern Logistics.
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On the whole, it is not surprising
that pharmaceutical companies sell shares, companies, and businesses.
The industry expects that under the background of the transformation and upgrading of the global pharmaceutical industry, the "slimming" of domestic and foreign pharmaceutical companies will continue
.
At the same time, this may also become an important driving force
to promote the development of the innovative drug market.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.