|In 2015, with the comprehensive reform of policies providing a loose environment for the merger and integration of pharmaceutical enterprises, such as the breeze blowing across the lake, the whole industry has been in constant turmoil. From January to June 2015, cases of pharmaceutical M & A increased sharply; in the second half of 2015, with the huge fluctuation and rest of the stock market, the M & a valuation was more reasonable, and the M & A integration of pharmaceutical enterprises was carried out in a more rational and orderly manner.
In 2016, some large pharmaceutical enterprises, especially some listed companies, are committed to completing the layout of the entire industrial chain in order to expand the market scale, which will speed up the pace of M & A and restructuring. At the same time, due to the influence of the industry economy and the intensive release of medical policies, many small and medium-sized enterprises are struggling to develop and become the target of M & A of listed companies. It can be predicted that in 2016, "big fish eat small fish" will occur frequently.
According to the statistics of Shanghai Stock Exchange, in the first half of 2015, there were 47 mergers and acquisitions in the pharmaceutical sector, mainly in the production of chemical drugs and traditional Chinese medicine. In the first half of 2015, the largest case of pharmaceutical mergers and acquisitions was Youbo pharmaceutical, which borrowed 6.5 billion yuan from Jiuzhitang. In the second half of 2015, after a short fall in the merger and acquisition market, due to the merger and acquisition of state-owned enterprises. In terms of restructuring policy, good news continues, the market's expectation for a new round of M & a boom is strengthened, and the M & A will return to normal again in November.
A comprehensive analysis of the M & A cases in 2015 shows that the M & a heat of each industry segment is negatively correlated with the industry concentration, and positively correlated with the valuation multiple. In each industry segment, the overall profitability is strong, and the number of enterprises that take the initiative to exit is relatively small. M & A has become the main driver and inevitable choice for the improvement of industry concentration. In the first half of the year, the primary market value is concentrated at 10-20 times, the secondary market value of each industry segment is between 20-80 times, and the medical device and medical service industry value is continuously more than 50 times. The valuation gap attracts listed companies and merged companies to actively participate in M & A to realize asset securitization. Compared with pharmaceutical circulation industry and pharmaceutical industry, medical service and medical device M & A are particularly active, which has a great relationship with the relevant policies of the industry and its own changes.
Oriental Securities research shows that more than 70% of pharmaceutical enterprises in China have revenue less than 50 million yuan, and nearly 20% of them are in a state of loss. According to the calculation of the technical transformation cost of 30-50 billion yuan invested in the new GMP, each pharmaceutical enterprise will invest 6-10 million yuan on average, and the transformation cost will make small and medium-sized enterprises pay 2-3 years of operating profit. However, from the perspective of the industry, the new GMP transformation will accelerate the elimination of backward small and medium-sized enterprises, provide opportunities for listed companies and leading enterprises to merge and expand, and promote the industry concentration.
The general trend of M & A Integration
Looking back on the M & A of the whole pharmaceutical industry in 2015, the observers pointed out that many factors are boosting the proliferation of M & A cases in the pharmaceutical industry. Even the pharmaceutical giants are worried about their survival. They should not only face the limited development space of their mature product market, but also be affected by policies such as medical insurance fee control, bidding and price reduction, which means that revenue and profit may be impacted to some extent. The national development and Reform Commission has liberalized most of the drug prices. The clothing of "special commodities" of drugs has gradually faded. The market is further fully competitive, and a price war is inevitable. With the increasing segmentation of the pharmaceutical sector, the concepts of precision medicine, Internet medicine and gene sequencing are becoming more and more popular, and those with strong capital want to quickly enter the emerging field through acquisition.
It is not difficult to find out that consolidating the main business of expanding the industrial chain is the main purpose of listed companies to acquire biotechnology assets, or to expand the market with the help of the target companies, or to share the regional and user resources of the target companies, or even to directly enter the emerging markets and innovative technical means through M & A, which can be described as more than one stroke.
One of the major trends of the real drugstore industry is the further improvement of the concentration, the single drugstore is more and more difficult to survive, many choose to close or be incorporated. Only offline M & A expansion is not the only way for physical chain drugstores, and the development of pharmaceutical e-commerce business can be invincible.