In 2010, the tide of medical and commercial mergers and acquisitions surged

Business News Agency December 20 News This year, the domestic pharmaceutical circulation has seen a resurgence in the field of mergers and reorganizations, especially in the context of the steady progress of the new medical reforms and the upcoming introduction of the "12th Five-Year Plan" for pharmaceutical distribution. Sinopharm Group, China Resources Pharmaceuticals Commercial leaders such as Shanghai Pharmaceuticals and Kyushu Tong have exerted their stunts and seized the "beneficial topography" in the pharmaceutical business. A "compromising closeness" has begun.

Sinopharm Group seize the commanding heights

At present, Sinopharm Group is a leading leader in the domestic pharmaceutical industry, and is also the largest medical enterprise group focusing on pharmaceutical research, production and service trade. Its subsidiary Sinopharm has a huge sales network and can not only cover more than 7,800 companies. The hospital and more than 3,000 distributors also have five logistics centers in Beijing, Shanghai, Tianjin, Guangzhou and Shenyang. The strong pharmaceutical distribution capability can provide ecological chain services for the distribution of pharmaceuticals.

In September 2009, Sinopharm Group reorganized with Zhongsheng Group, an important state-owned key enterprise and China's largest producer of vaccines and blood products. Zhongsheng Group is mainly engaged in the manufacture and sale of three kinds of biological agents such as vaccines, blood products and diagnostic reagents. 90% of the planned immunization vaccines in China are from this company.

On April 12 this year, the SASAC released the news that the Shanghai Pharmaceutical Industry Research Institute was integrated into the China National Pharmaceutical Corporation as a wholly-owned subsidiary. Shanghai Medical Industry Institute is the only pharmaceutical research institute in the central government. Its main business is the research and development of innovative drugs, pharmaceutical production and sales, and its research and development strength is second to none in the country.

Since then, the pace of mergers and acquisitions of Sinopharm Group has significantly accelerated.

On October 12, Sinopharm Group and the Hubei Provincial Government signed a strategic cooperation agreement. According to the agreement, Sinopharm Group will invest more than RMB 5 billion in Hubei to create platforms for pharmaceutical R&D and design, pharmaceutical and medical device manufacturing, pharmaceutical distribution and comprehensive services to enhance the R&D strength, independent innovation, and scientific research transformation of Hubei's pharmaceutical industry. The ability and industry concentration will help promote Optics Valley Biological City's goal of achieving "internationally-renowned and domestic first-rate".

On October 18, with the approval of the State Council, China National Service for Personnel Services Corporation was integrated into Sinopharm Group as a wholly-owned subsidiary. The middle service is mainly targeted at comprehensive international economic and trade business, providing tax-exempt foreign exchange goods to overseas personnel and providing living materials to overseas agencies, including import and export trade and agency, Chinese government foreign aid general goods and supplies projects, foreign labor cooperation, international storage and transportation, Industrial investment, etc. are within its business scope.

After winning the service, although Sinopharm Group's mergers and acquisitions are still striding forward, but Sinopharm and Shanghai Pharmaceuticals value the quality of the reorganized medical assets, Sinopharm seems to focus more on spreading the points.

In November of this year, Sinopharm Group under Sinopharm Group entered into an investment integration agreement with Nanjing Guosheng Pharmaceutical Co., Ltd.: Sinopharm Group invested 28 million yuan to acquire all shares of Guosheng Pharmaceutical and acquired 12 million yuan Guosheng Pharmaceutical invested in Nanjing Guosheng Chain. The 60% stake.

On November 27th, Sinopharm Co., Ltd. officially entered Heilongjiang and established Sinopharm Holding Heilongjiang Co., Ltd. The new company is the 51st holding subsidiary formed by reorganizing the local private enterprise Heilongjiang Longwei Tongxin Pharmaceutical Co., Ltd. At the same time, Sinopharm Group decided to complete the layout of outlets in 13 cities in Heilongjiang Province in 2011 and extend its business network to counties and townships in the province.

On December 9th, Sinopharm Group Northwest Pharmaceutical Co., Ltd. signed an agreement with Yulin Municipal Government of Shaanxi Province. According to the agreement, Sinopharm Group will reorganize Yulin Pharmaceutical Medicine Co., Ltd. and jointly establish a new Sinopharm Holdings Yulin Co., Ltd. to take full advantage of Yulin’s advantages in Chinese medicinal materials and effectively play the role of Sinopharm Group in the development, production, and operation of pharmaceutical products and devices. The advanced technology in the field will be bigger and stronger in the pharmaceutical industry in Yulin.

Comment: For the former Sinopharm Group, more than 80% of its revenue came from the pharmaceutical circulation sector. This is its strongest segment, but the production of blood and biological products has always been its shortcoming. After the reorganization of the Zhongsheng Group, not only industrial shortcomings were able to be remedied, but also the biological products business became the eighth business segment of the Sinopharm Group following the seven business segments including Chinese medicine, medical equipment, and pharmaceutical import and export. The Sino-Singapore Group has unrivalled industry advantages in scientific research and biological products. This advantage just makes up for the many shortcomings in the Sinopharm Group's integration of science, industry, and trade. The reorganization made the dream of the entire pharmaceutical industry chain of Sinopharm Group take shape.

However, in terms of research and development, Sinopharm Group still seems to be in short supply. Therefore, the only medical research institute of the central government is the Shanghai Medical and Technical Institute. This is an important step for the Sinopharm Group to build a pharmaceutical platform for the central SOEs. It also means that the “5 change to 3” of pharmaceutical central enterprises has become a reality. In the restructuring of Sinopharm Group, it aims to use its international resources to improve its core competitiveness in international operations. So far, in the existing territory of Sinopharm Group, Sinopharm has already owned the business network of Sinopharm Holdings, the advantages of biological resources of Zhongsheng Group, the scientific research resources of Shanghai Medical Industry Institute, and the international platform of the Chinese medicine service. It can be said that the present Sinopharm Group, Has occupied a commanding height in the various pharmaceutical industry chain.

However, after the service was issued during the reorganization, the focus of Sinopharm's merger and acquisition seemed to be on the grassroots pharmaceutical resources. Therefore, it was considered by the industry as a focus only on coverage, and not on the quality of the merger and reorganization of assets. However, such a strategic move, Sinopharm may have its own considerations. First, cover the surface, and then carry out unified upgrades. Such a method of operation can be a strategy for a drug giant like Sinopharm.

China Resources Pharmaceutical

China Resources Medicine Group Co., Ltd. is a large-scale pharmaceutical manufacturing and distribution company established by China Resources (Group) Co., Ltd. based on the requirements of the State-owned Assets Supervision and Administration Commission of the State Council for “Building a State-owned Enterprise Pharmaceutical Platform” and reorganizing the central government Huayuan Group and the Sanjiu Group pharmaceutical resources. China Resources Group integrated the development of wholly-owned enterprises in the domestic pharmaceutical industry.

On April 2 this year, China Resources Group and the Beijing Municipal Government formally signed the "Framework Agreement on Strategic Cooperation for the Joint Development of the Pharmaceutical Industry and the Microelectronics Industry." The main content of the agreement is the joint reorganization and integration of pharmaceutical resources. On July 30, Beijing SASAC and China Resources Group held a signing ceremony for the cooperation of the biopharmaceutical industry sector at Beijing International Hotel. China Resources Medicine will hold 100% shares of Beijing Pharmaceutical Group (hereinafter referred to as BeiPai). At this point, Beijing Pharmaceuticals has been placed under China Resources Pharmaceuticals.

On November 16, Shandong Northeast Pharmaceutical CITIC Pharmaceutical Co., Ltd. was unveiled at Jinan Luan Industrial Park. At the same time, the largest modern medicine logistics center in Shandong Province was also founded. The new company is jointly established by Beijing Pharmaceutical Co., Ltd., a subsidiary of China Resources Pharmaceutical, and Jinan Citic Pharmaceutical Co., Ltd. Among them, Beijing Medical holds over 95% of the company's shares and the total investment reaches 500 million yuan.

Two days later, on November 18th, China Resources Medicine announced in Suzhou that it had signed a cooperation agreement with Suzhou Li'an Pharmaceutical Co., Ltd., a leading local pharmaceutical and business enterprise. The company's Beifang Pharmaceutical Co., Ltd. injected capital of RMB 1 billion to hold a 65% stake in Suzhou Li'an. China Resources North Pharmaceutical said that within 3 years, Jiangsu Li’an will achieve an average annual increase of 20%, and a commercial scale of RMB 10 billion will be realized in the southern Jiangsu region.

On December 3, the second largest pharmaceutical commercial enterprise in Henan Province, Aisang Pharmaceutical Logistics Co., Ltd., officially joined the China Resources Group and became a holding subsidiary of Beifang Pharmaceutical. After winning the love of medicine, China Resources will continue to merge with other local pharmaceutical companies in Henan. At present, China Resources has signed reorganization agreements with several Henan pharmaceutical and commercial enterprises. China Resources’s goal is to achieve annual sales of 8 billion to 10 billion yuan in the pharmaceutical industry in Henan Province at the end of the “Twelfth Five-year Plan” period.

Comments: The real development of China Resources Medicine should start with the official winning of Beijing medicine. In the current domestic distribution of pharmaceuticals, only Sinopharm Group and Kyushutong have a national network layout. Sinopharm Group has achieved coverage of all domestic provinces and cities except Tibet and Qinghai, and Kyushu Pass also covers more than 70% of the national total. Administrative regions. However, for China Resources, its only medical assets are Anhui Huayuan in the Midwest and China Resources Sanjiu in the south.

The determination of China Resources to create a “central pharmaceutical enterprise platform” is extremely firm, but it cannot break through in the Beijing pharmaceutical market, which holds the largest share of the country, and in the broader Northeast market. At the same time, Sinopharm's merger with the China Health Group and “New Drugs” also surfaced. In the context of this series of “internal and external problems,” China Resources Medicine began to make frequent contacts with Beijing Pharmaceuticals.

In order to obtain Beijing Pharmaceuticals, China Resources has settled its headquarters in Beijing for its two main business lines: pharmaceutical group and microelectronics business management.

After China Resources reorganized North Pharmaceuticals, the pharmaceutical assets controlled by China Resources include North Pharmaceutical, China Resources Sanjiu and Dong'e Ejiao, covering the fields of Chinese medicine, health products, pharmaceutical circulation and medical devices. Not only can China Resources North China Pharmaceutical Group build a brand new platform for the China Resources Pharmaceutical Group, but it can also form a “pharmaceutical North China drug, and there are thirty nine” pharmaceutical formats, and the overall scale will also surpass the “new drug” and be ranked in the country. second. At this point, China Resources built a state-owned pharmaceutical carrier only one step away.

After Huarun brought North Pharmaceuticals into its pocket, it began to rapidly expand into neighboring provinces based on North Drugs. Among them, China Resources' acquisition of Suzhou Li’an with a capital of RMB 1 billion was seen as the first time that it crossed the south of the Yangtze River and it was the beginning of a “new drug” campaign.

Shanghai Medicine ("New Medicine")

Expanding to the whole country

On July 1, 2008, through the free transfer of state-owned equity, Shanghai Shangshi, a subsidiary of the Shanghai Real Estate Group, acquired 60% of Shanghai Pharmaceutical (Group). Shanghai Pharmaceutical has become the overall listing platform of SIIC Group. On June 18, 2009, Shanghai Pharmaceuticals, Shangshi Pharmaceutical and Chinese and Western Medicine announced that they would implement a major asset restructuring and suspend trading for five working days. On October 15, 2009, the major assets reorganization plan for the pharmaceutical business of Shangshi Group and Shanghai Pharmaceutical Group was formally announced: Shanghai Pharmaceutical was used as a platform to integrate and merge the two listed companies of Shangshi Pharmaceutical and Sino-western Pharmaceuticals, and the Shanghai Pharmaceutical Group Some of the pharmaceutical assets and all of SIHL's pharmaceutical assets - "New Drugs" have become the only listing platform for Shanghai's state-owned pharmaceutical industry. On March 9 this year, Shanghai Pharmaceuticals resumed trading, ranking second in the country, second only to Sinopharm Group.

On March 25th, Shanghai Pharmaceuticals and Fujian Overseas Chinese Industrial Group signed a comprehensive strategic cooperation framework agreement. According to the framework agreement, the two parties will jointly establish a drug research and development platform and jointly promote the construction of pharmaceutical logistics projects on the West Coast of the Taiwan Strait. The move marks that Shanghai Pharmaceuticals has completed the overall distribution of its distribution network in six provinces and one city in East China and has laid its unshakable leading position in East China.

On April 5, Shanghai Pharmaceuticals announced that it would invest RMB 140 million to acquire 51% equity of Guangzhou Zhongshan Medicine and Medicine Co., Ltd. in the form of acquisition of equity and capital increase. Zhongshan Medical is the third largest distributor in Guangzhou. This is the first step in the nationwide expansion of Shanghai Pharmaceuticals after its restructuring.

On April 28, Shanghai Pharmaceuticals announced again that it would acquire the 26.39% shares (24,574,200 shares) held by the legal person of Qingdao Guofeng Pharmaceutical Co., Ltd. for 150 million yuan. As early as 2004, Shanghai Pharmaceuticals increased its capital by RMB 320 million to expand its shares in Qingdao Guofeng, which is owned by Qingdao Guofeng Group Co., Ltd., and owns 51% of its shares. Qingdao Guofeng has the strongest profitability among many companies under the Guofeng Group, with an annual profit of over 75 million yuan, accounting for 70% of Guofeng Group's total profit.

On May 19, Shandong Shangye Shanglian Pharmaceutical Co., Ltd., a joint venture of Shanghai Pharmaceutical Distribution Holdings Co., Ltd., a subsidiary of Shanghai Pharmaceutical Group, and Shandong Shanglian Biochemical Pharmaceutical Co., Ltd., was officially unveiled. The goal of the new company is to form a logistics distribution center and sales center centered on Jinan, radiating the province, and to enter the forefront of the Shandong pharmaceutical distribution market, to become a modern pharmaceutical logistics company.

On November 3, Shanghai Pharmaceuticals announced that it has signed a strategic cooperation agreement with Shanghai Pharmaceutical Distribution Holdings Co., Ltd. (Shangpai Sales) and Mingyuan Medical, which is engaged in the bio-diagnostics industry in China. The strategic cooperation between Shanghai Pharmaceutical Sales and Mingyuan Medical is based on the mutual complementarity of the biopharmaceutical business and products of the two parties, and the cooperation will help to supplement the sales of the drug and enrich the business of its biological diagnostic reagent products.

On December 14th, Shanghai Pharmaceuticals announced that it will invest RMB 1.487 billion to acquire the antibiotic business and assets of Shanghai Pharmaceutical Group with Xinya Pharmaceutical as the core; at the same time, the company invested RMB 2.328 billion to acquire China Health System Ltd. (CHS) 65.24% of controlling stocks made breakthrough progress and signed a formal share purchase agreement. The substantive assets of CHS are CITIC Pharmaceutical, the third largest pharmaceutical and commercial enterprise in Beijing. The completion of these two mergers and acquisitions marks a further step in the development of Shanghai Pharmaceuticals into a large-scale comprehensive pharmaceutical industry group.

Comments: In fact, Shanghai Pharmaceuticals has been quiet since Shanghai Pharmaceutical Co., Ltd., a subsidiary of the Shanghai Pharmaceutical Group, integrated the pharmaceutical assets of Shangshi Group and Shanghai Pharmaceutical Group in October 2009. Until the end of last month, Shanghai Pharmaceuticals suddenly bought Beijing CITIC Pharmaceuticals, the third largest pharmaceutical distributor in Beijing, for 2.328 billion yuan. This allowed Shanghai Pharmaceuticals, which had been in a long period of time, to enter this integration war.

The reason why Shanghai Pharmaceuticals has to pay a big price for the acquisition of CITIC Pharmaceuticals is mainly due to the counterattack of China Resources. Because China Resources North Pharmaceutical acquired Suzhou Li'an, this was considered by the industry as a piece of China Resources to go to the door of the drug. This time, Shanghai Pharmaceuticals also used the same tactics to directly win the No. 3 Citic Pharmaceutical in Beijing. At this point, the competition between China Resources and Shanghai Pharmaceuticals really entered a white-hot phase. After Shanghai Pharmaceutical won CITIC Pharmaceutical, its business would also burst out of East China and begin to expand into North China. This will also add strength to the future competition among pharmaceutical giants such as Sinopharm, China Resources, and Kyushu Link.

Kyushu pass

Listing is a reality

Kyushutong is a joint-stock private enterprise that focuses on pharmaceuticals, medical device wholesale, retail chains, and pharmaceutical production and R&D. In 2009, Kyushu Express achieved a sales revenue of 18.9 billion yuan, ranking third in the nation's pharmaceutical business enterprises. Its pharmaceutical distribution network covers more than 70% of the country's administrative regions.

Since January 2008, the Jiuzhoutong Group has begun to seek a road to listing. On August 18 of this year, the issuing and reviewing committee convened a working meeting to review the application for the launch of Jiuzhoutong. This has become the first IPO project of the main board in Hubei Province since 2004. On November 2nd, Kyushu Tongmai Group Co., Ltd. was formally listed on the Shanghai Stock Exchange, and the stock was referred to as “Kyushu Link”.

Comments: Unlike China Resources and Shanghai Pharmaceuticals, Jiuzhou Tong has the same widest distribution network for pharmaceuticals as China National Pharmaceutical Group, which is also its biggest advantage. At present, Kyushu Pass has established a number of pharmaceutical companies in South China and North China. It has 14 provincial-level large-scale pharmaceutical logistics centers and 206 business offices, covering more than 70% of the country's administrative regions.

Although there have been no substantial changes in the top three rankings of pharmaceutical distribution companies in China in recent years, China Resources and Shanghai Pharmaceuticals will become strong opponents of Kyushu through the successful acquisition of North Pharmaceutical and Shanghai Pharmaceutical Co. After the listing of Kyushu Express, it will not only be able to obtain funds faster, thereby enhancing its financing capacity, but also promoting its greater development space and expansion capabilities. For the entire industry, Kyushu Express will promote a new round of reshuffling in the pharmaceutical logistics industry after listing.

In addition to the increasingly fierce competition between Sinopharm, China Resources, Shanghai Pharmaceutical, and Jiuzhoutong, other companies that have entered the Top 100 of pharmaceutical circulation have also launched a series of competitions: such as the South China Pharmaceutical Group, Guangyao Pharmaceutical Group, in the development of the first Da Nan Pharmaceutical. "Strategic summit forum" "played a strategy card to rejuvenate Danan Drugs." Nanjing Medicine has recently fallen into the middle of reorganization of Sinopharm, China Resources, and Shanghai Pharmaceuticals... and this series of mergers and reorganizations will rewrite China's pharmaceutical distribution industry. Pattern.