According to statistics, the medical health industry will maintain an annual growth rate of 10% to 20%, and it is expected to reach 8 trillion yuan by 2020. In the industry's view, the integration of medicine, medical and other related fields has become a general trend, and now the merger and acquisition of the medical and health industry is intensifying.
Cai Dajian, chairman of Shenzhen Gaotejia Investment Group Co., Ltd. said in an interview that the industry's investment mergers and acquisitions are now concentrated in the "big eat" state, at an early stage. However, this momentum will extend to medium-sized companies and even large enterprises in the future.
M&A integration in the medical and health industry is intensifying
On May 27th, the Co-investment issued an announcement on the signing of the framework agreement for the establishment of an industrial merger fund. In this announcement, Co-investment pointed out that one of its goals for investment M&A includes the big health sector represented by “Internet + Rehabilitation Medicineâ€.
On the same day, Dongcheng Pharmaceutical announced that the fitting price was 3.8 billion yuan to acquire 70% equity of Zhongtai Biotech and 83.5% equity of Yitai Pharmaceutical. In addition, Tianyao shares disclosed the plan to acquire 62% equity of Jinyao Pharmaceutical and 100% equity of Hubei Tianyao on the previous day.
In the industry's view, the integration of medicine, medical and other related fields has become a general trend. On May 28, in an interview with reporters, Cai Dajian, chairman of Shenzhen Gaotejia Investment Group Co., Ltd., said that the industry's investment mergers and acquisitions are now mostly in the state of “big eat and smallâ€, at an early stage. However, this momentum will extend to medium-sized companies and even large enterprises in the future.
M&A market at home and abroad
In the past few months, similar initiatives have been taken in mergers and acquisitions, including Fosun Pharma, Huashen Group and Renfu Medicine. Taking Huashen Group as an example, after a few days of suspension, it announced on the 24th that it intends to acquire 51% of the equity of Wanglintang in cash, thereby expanding the business scope of listed companies and improving profitability.
Of course, the active mergers and acquisitions of Chinese companies do not stop at home, and many companies have already turned their attention to overseas markets. On the evening of May 18, Tailing Pharmaceutical announced that it had reached an agreement with Novartis, one of the world's three major pharmaceutical companies, to acquire the undergraduate brand, related intellectual property rights, licenses and other assets. The transaction amounted to $145 million.
In the industry's view, Chinese companies have valuation advantages in the domestic capital market. Once foreign companies have complementary companies in technology and business, Chinese companies are not difficult to understand, and this situation has already been More active.
In terms of industrial funds, many companies are also in the layout. Boya Bio has previously announced that the company intends to use its own funds of no more than 150 million yuan and its wholly-owned subsidiary, Hongrui Investment and other parties of the controlling shareholder Gao Tejia Group, to jointly establish pharmaceutical industry mergers and acquisitions in the form of limited partnerships. fund. It is reported that the size of the M&A fund reached 600 million yuan. According to the reporter of "Daily Economic News", the controlling shareholder of Boya Bio-Gao Tejia Group has launched an industrial merger fund of 3 billion yuan this year.
“Healthy medical sub-sectors and sub-sectors are very numerous. Each segment is in a different stage of development and will bring different capital needs.†In explaining the logic of investment M&A, Cai Dajian analyzed that it is relatively mature. In the industry, the increase in the total amount will not be too fast. At this time, the development of the industry has entered the stage of internal promotion and reshuffle. "At this time, the integration of resources and the demand for mergers and acquisitions will be more, and strong and advantageous enterprises will merge small enterprises." He believes that in this field, mergers and acquisitions can basically play a role.
Cai Dajian also said that relatively speaking, in the growth-oriented sub-sector, enterprises have independent development space, so the days are relatively better, and the industry's integration opportunities are smaller.
Despite the industry's continued efforts in the layout of M&A funds, Cai Dajian admits that investment in M&A in the health care sector is still dominated by “industry backgroundâ€. In his view, some PE institutions and others do not have the ability to enter the industry and manage the industry in essence, and most of them play a role of coordination.
The next step is to predict the acquisition of medium-sized enterprises.
The most significant problem brought about by industrial mergers and acquisitions is whether the integration can be successful. Analysts pointed out that for enterprises, although theoretical investment M&A can achieve scale effect, diversified development, and complementary resources, the failure rate of investment and mergers and acquisitions is not low.
The media had previously reported that 527 companies had performance commitments in mergers and acquisitions last year. Among them, 107 companies failed to meet the target performance, 23 of them met the standard rate even less than 10%, and even some of the restructuring targets suffered serious losses, posing a heavy burden on listed companies. .
"This data is not the medical industry, the medical industry will be better." In Cai, it seems, for the enterprise in terms of medical and health field, during the merger is necessary to stand in the perspective of industrial development, another point is the same counterparty A consensus should be reached on multiple fronts, including long-term goals. In its view, the M&A program is not the most important factor in the overall transaction.
According to statistics, the medical health industry will maintain an annual growth rate of 10% to 20%, and it is expected to reach 8 trillion yuan by 2020. In the eyes of the industry, the current national drug supervision policy, including the consistency evaluation, will bring more significant advantages to the dominant enterprises.
Cai Dajian told reporters that in the field of medical and health, mergers and acquisitions have been very active, and this momentum will not stop. “Because the industry is still very fragmented, and the gap between enterprises is more obvious in the context of industry dispersion, companies with some advantages, including some companies already listed, will become the main force of mergers and acquisitions, and their systems have capital support. For those companies that are targeting IPOs but feel that they are far away, for development, they may choose to work with core companies."
Cai Dajian finally pointed out that the current industry mergers and acquisitions are still in the early stages. "Future integration will be integrated into the middle and high-end. Now it is big and small, and it may be a big meal in the future, a merger between China and China, and a merger between big companies. It is still early!"
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