Medical network - June 30, to further improve the network layout, strengthen prescription in east China's leading position, Shanghai pharmaceutical group's largest drug distribution enterprises recently announced the acquisition of xuzhou pharmaceutical medicine holding co., LTD. From the past to the layout of the medicine business sectors, from the end of November last year in yunnan, the recently added mohican xuzhou, prescription holdings in a new round of "triangle" four layers under the guidance of strategic planning, national more steady pace.
Xuzhou medicine has experienced too many rounds in the pharmaceutical business before taking "hold hands" with the drug. In fact, across the world, consolidation in the pharmaceutical industry seems to have never stopped. In terms of medicine circulation enterprises, mergers and acquisitions motivation from several aspects: reform policy gave rise to the survival of small and medium-sized enterprises worry, industrial policy to encourage consolidation, of all kinds enterprise identity gradually to the consolidation trend, the continued prosperity of the capital market, as well as the mainstream enterprise intensive growth strategy.
In the "two votes" carry the camp to increase and gold three period such as New Deal regulation comprehensive across the pharmaceutical industry at present, as we had expected, the pharmaceutical industry and a merger era is coming.
2010 was an important turning point
The future is unknown without knowing it. As follows, the author will briefly trace the m&a history of the pharmaceutical circulation industry in China.
As is known to all, state-owned and state holding enterprises occupy about 60% of the market share, therefore, is in fact the history of medicine circulation industry mergers and acquisitions of large central/both history of state-owned enterprises, and the limit of the space, this article will discuss emphatically sinopharm, China resources medicine, Shanghai pharmaceutical mergers between three big pharmaceutical circulation situation.
After a long period of market-oriented reform, the state-owned pharmaceutical circulation enterprises finally began to grow rapidly in 2003, and the profit margin also increased rapidly. Large-scale restructuring has forced a large number of inefficient state-owned enterprises to withdraw or transform. The remaining elite forces will become the main force of state-owned enterprises. At the beginning of the new century, large state-owned enterprises were transformed from traditional state-owned enterprises to emerging modern joint-stock companies. Since then, Chinese medicine circulation m&a market opened a continuous 10 years high speed development, is the so-called "golden decade" of the pharmaceutical industry, m&a is the most striking feature of this time state into local governments rushed to draw investment main body, and become the main m&a market, across many industries, local state-owned enterprises have their own action, but were unable to match.
2010 for medicine circulation industry is an important turning point, the big three collective action blockbuster, successively have countries accused of Hong Kong IPO, medicine overall listing, founding holdings, China resources integration goes some way to build a circulation top 3 position. Since then, the three troika began to compete for the m&a market, and the integration of pharmaceutical and commercial industry in China has changed dramatically.
In this paper, the author briefly traces the pace of national drug control in recent years to explore the industry orientation and strategic thinking behind the integration of the giants.
A brief review of the m&a strategy of sinopharm
First, create a national architecture that is truly national. As in May 2010 the establishment of the state-controlled company in guizhou, the basic control achieved all provinces (except Tibet) are subsidiaries of network building, although some layout form is greater than the content, but the unprecedented influence national network.
2. Strengthen existing regional advantages and further enhance market status through mergers and acquisitions in areas such as guangdong, guangxi and liaoning, focusing on areas where opponents are weak. After the initial situation in the northwest, state control began to exert force in the vast central plains and southwest China. In 2010, the maximum exertion in henan was the most severe, and then extended to shandong province.
3. Develop strategic depth to city and county. This is one of the three dimensions of state control (the other two are regional breadth and terminal), which aim to control urban and grassroots terminals.
4. New business layout. Since 2012, China has been gradually extending its acquisition reach to new areas of health, equipment, retail and other new business areas, aiming to break new areas and gain new growth areas.
Integration into stage 4
Over the past ten years, in addition to the key points of integration of the three major circulation giants in 2010, the integration of the circulation field has shown the following four characteristics in different historical stages.
First stage (before 2009)
The mountain and the rain
Before 2009, m&a in pharmaceutical circulation field are calm, founding holdings has yet to implement large-scale regional expansion strategy, prescription for a small amount of mergers and acquisitions, jiangxi province, south China, Qingdao, ningbo medicine Fahrenheit is a local leader, began their state-controlled.
During this period of merger and acquisition, there is no significant gap between the drug and state control from the pure sales scale of the enterprises. However, the first-mover advantage of the drug and state control has not affected the development of China resources.
Stage 2 (2010-2012)
Power of central government
Since 2010, state control has begun to promote the national acquisition rapidly, with 71 and second level mergers and acquisitions of pharmaceutical commercial enterprises from 2010 to 2012. China resources reorganization north medicine since 2010, gradually increase the intensity of pharmaceutical business integration, establishment of CRC pharmaceutical business group co., LTD., three years to more than 20 group internal business integration and external m&a. The company also completed 14 mergers and acquisitions during this period.
From the perspective of m&a, jiangsu, zhejiang, shandong, guangdong, Beijing, henan and hunan are the provinces that are the focus of the three companies. In terms of size and quality of m&a, 2011 is the biggest year for China to control mergers and acquisitions, and the new revenue constitutes 15.2% of the total sales. China resources acquisition is the first choice of local quality leading enterprises, such as jinan citic medicine, suzhou lian, China resources henan, China resources guangdong and so on.
Stage 3 (2013-2015)
Business orientation, regional deepening
Compared with the previous period, the pace of large-scale mergers and acquisitions in drug distribution industry has slowed significantly, and the circulation pattern of the big four national enterprises and the major local faucets is basically stable.
While China controls internal integration, mergers and acquisitions mainly focus on the retail sector, while the distribution in the wholesale sector is dominated by channels.
The business of China resources medicine is the financial help of China resources medicine, and implement the advanced operating mode and information management system to further realize the economies of scale and synergies. During this period, the income from the expansion of China resources merger and acquisition was presented. In 2010-2015, the revenue of China resources pharmaceutical business realized the compound annual growth rate of 54.0%.
In terms of commercial network acquisition and integration, the drug has added four provinces and cities from 2013 to 2015, which further strengthened east China, merged with 59 enterprises, and achieved an impressive record of 9.31 billion yuan.
Stage 4 (2015 to present)
The layout is healthy and international
In the past two years, the big three have seen a slightly different focus on m&a, but in general it is aimed at a broader and larger health market. The state control of medical services, finance lease and other fields have dropped a heavy pen. Jump is also exceptionally bright eye and prescription of internationalization, in October 2016, Shanghai pharmaceutical paid $900 million merger Vitaco Australian health care products company, the internationalization of the future in terms of innovation, the generic layout is more looking forward to. The China resources industrial plate is mainly driven by merger and acquisition and strongly defends the leading position of the domestic OTC market. The strategy of commercial layout is to open the blank area without stopping and strive to build a national network.
It should be pointed out that, in the past two years, the recombination of the drug and China resources has been relatively high, and it is foreseeable that the competition for terminal varieties in the "two-ticket system" will become more and more intense.
Conclusion the < < <
Diversified merger and acquisition potential
To sum up, for is located in the middle in the industry of medicine circulation enterprises, network, scale, efficiency is the base of its survival and development, especially under the background of "two votes" policy, limited business transfers, pure sales network to some extent determines the breadth and depth of the development of the stock of companies business. Therefore, the integration of merger and acquisition with network deepening and new market expansion will remain an important subject for all kinds of circulation enterprises in the future.
, of course, face the reality of medicine market slowdown and health China strategy driven by 8 trillion large scale increments, each benefit main body on the industrial chain of planning layout seems to have jumped out drug area, therefore, in the new era of medicine circulation m&a increasingly diverse, from drug related medical equipment, health care products, traditional Chinese medicine, medical services, medicine, electricity, PBM areas such as layout, between giant launched with melting, cross-border mergers and acquisitions are common occurance. These mergers and acquisitions will contribute to the upgrading and concentration of pharmaceutical circulation industry to some extent. (author mou qiong is a researcher of Shanghai medical strategy research institute) |
