点击此处查看全部新闻图片

        The analysis materials identified by Beijing Heading Century Consulting Co., Ltd.

点击此处查看全部新闻图片

The analysis materials identified by Beijing Heading Century Consulting Co., Ltd.
       More than 4000 pharmaceutical companies in China can be classified into three categories: those firms that are backed up by the Government with strong financial support sharing 30% of the market. They’re conglomerates boasting for strong finance-seeking capability as hero in M&A storm. The second group is the foreign exclusives and joint-ventures which are sharing 60% of the market. Based on OEM orders, they’re engaging on chemical drugs as processors for foreign exclusives and joint-ventures. The last group is relative small companies spearheading towards R&D. They’re nimble players grabbing 10% of market share while their brand-new drugs charm venture-capital overwhelmingly.

点击此处查看全部新闻图片

The analysis materials sorted out by Beijing Heading Century Consulting Co., Ltd.
2. The driving forces behind M&A of pharmaceutical industry in China
     Among many problems, the M&A in this sector hinges on number of points as followed:
　　First, there was small chunk of investment being financed into R&D on Chinese pharmacy coupled with looming risks from R&D and cost overrun triggered by state drug reclamation procedure. At the same time, the drug reclamation procedure will affect on drug marketing and corporate image which will meet the resistance from customers and create negative impact on survive and development of medical firms. All these points is targeting to a foregone conclusion which is M&A.
　　Second, the medicine companies’ plaques by low survivability are the companies small in size and large in number. From the consideration of expanding market, boosting capacity and integrating into medicine industry, the M&A among bio-tech firms, conglomerates and intermarriage of the two prove inevitable as to stir competition.
　　Third, the cheap price policy has been capping the growing profit among pharmaceutical companies and chemical drug firms especially. The plummeting drug price will put threat against profit in small companies that rely on blockbuster drugs limited in number. The result from that is the company being boxed out of the market or seeking new partners even facing acquisition when they are driven to nowhere. This consolidation will swallow number of small and medium companies.
　Case study of M&A in pharceutical companies

Time	Involved Companies	Means of Deal
2005	Chongqing Huapont Pharm Co., Ltd,    &  Shanxi Hanjiang Pharmaceutical Group Ltd.	RMB 69 million out of RMB 79.4057 million of fundraising for targeted project by Chongqing Huapont Pharm Co., Ltd is planned to be used for buying 45% of state-owned stock in Shanxi Hanjiang Pharmaceutical Group Ltd from the State Asset Commission of Hanjiang City. With that, Chongqing Huapont Pharm Co., Ltd, will be the first share-holder of Shanxi Hanjiang Pharmaceutical Group Ltd. and using it as springboard for moving into European and American market.
2005	Yichang Sanxia Pharmaceutical Co., Ltd  & Hubei Zhongtian Airbeck Pharmaceutical Co.,Ltd.	Yichang Sanxia Pharmaceutical Co., Ltd bought Hubei Zhongtian Airbeck Pharmaceutical Co.,Ltd. with RMB 0.11 billion. The new establishment of Sanxia Pharmaceutical enjoys two production bases in Yichang and Xiangfan sharing 55 ha. in land total with targeted return from RMB 0.26 billion to RMB 0.45 billion. The production capacity of Neomycin Sulfate will be doubled as the first producer on the world.
2005	Lenovo China & Jiangsu Simcere Pharm Co., Ltd	Lenovo China acquired 31% of stock from Jiangsu Simcere Pharm Co., Ltd with RMB 0.21 billion, which the first step taken by Lenovo China into medical industry.
2006	Bayer AG & Topsun Group	Bayer’s healthcare group pledge to purchase the business in three non-prescription drugs of Topsun Group including White and Black, among others, cold-fighting and cough relieving drug with RMB 1.072 billion. In addition, extra RMB 0.192 billion will be paid upon the performance of set target after the deal.
2006	Holley Share Holding  & Chongqing Furui Pharmaceutical Co., Ltd	Holley Share Holding acquired 30% of stock from Furui Pharmaceutical Co., Ltd. After the deal, Holley Share Holding will become the first share-holder of Furui Pharmaceutical Co., Ltd. This the second step into acquiring pharmas that engage in taxanes production after the successful take-over on Chongqing Meiling Pharm Co., Ltd.

The analysis materials sorted out by Beijing Heading Century Consulting Co., Ltd.
3. Tendency analysis in M&A of pharmaceutical industry in China
　　Those medium and small companies that are lack of bills for R&D, awareness of proprietary products and savvies will be slashed out of market as the technology, capital and R&D demand higher expectation from the pharmacy companies. Following more than 20 companies out of the top 25 in pharmacy multinationals moving in, the high-end market in pharmaceutical industry has been grabbed by these multinationals and their investment in China.
　　According the analysis materials from Beijing Heading Century Consulting, there exits three points to be mentioned:
A. Cooperation among giants: on one hand, the strong foreign players will come to China while those that have been present in China will strengthen their partnership with big Chinese firms to take more share of pharmaceutical market.
B. Vertical integration: as the tendency being set on the bio-medicine, most bio-tech companies will sharpen their edge to compete though M&A with large pharmas.
C. Horizontal integration: many big outsiders will step into the pharmaceutical industry by looking for great synergies in this sector and M&A is the best way to do so.
Contents:
The tendency analysis report on M&A in pharmaceutical industry
Chapter 1  Research Overview
Section 1   Background of the research
Section 2   Contents of the research
Section 3   Method over the research
Section 4   Team for the research
Section 5   Conclusion for research
Chapter 2  The status quo of pharmaceutical industry on world stage
Section 1   The development pattern of pharmaceutical industry worldwide
Section 2   The market status quo of pharmaceutical industry worldwide
1. The analysis of market status quo worldwide
1. The market demand analysis over pharmaceutical market
Section 3 The pattern analysis of competition in pharmaceutical industry
1. The analysis the competition in current pharmaceutical industry worldwide
2. The analysis on competition tendency in pharmaceutical industry worldwide
Chapter 3  The status quo of pharmaceutical industry in China
Section 1   The status quo and character of China’s pharmaceutical industry
1.  The status quo and character of China’s pharmaceutical industry
2.  The status quo and character of China’s pharmaceutical products
3.  The status quo and character of competition in pharmaceutical industry
Section 2  The investment analysis of pharmaceutical industry in China between 2006 and 2007
1.  The analysis on fixed asset and profit in pharmaceutical industry
2.  The analysis on R&D investment in pharmaceutical industry
Section 3  The analysis of foreign capital in Chinese pharmaceutical market
1.  The analysis on foreign investment in China’s pharmaceutical industry
2.  The marketing analysis for foreign capital in China’s pharmaceutical industry
3.  The strategic analysis of foreign capital in China’s pharmaceutical industry
Section 4  The analysis of import and export in China’s pharmaceutical industry between 2006 and 2007
1.  The overview of export
2.  The overview of import
Chapter 4  The market analysis of pharmaceutical industry in detail
Section 1  Chemical drug industry
1.  The analysis on chemical drug industry as whole and its character
1、  2.  The risk analysis and investment profit in chemical drug industry
Section 2  Patent prescription of TCM
1.  The analysis on patent prescription industry as whole and its character
2.  The analysis of competing capacity in patent prescription in world stage
3.  The risk analysis and investment profit in patent prescription
Section 3  Bio-medicine industry
1.  The analysis on bio-medicine industry as whole and its character
2.  The risk analysis and investment profit in bio-medicine industry
Chapter 5  The analysis of Investment Policy Environment in China’s Pharmaceutical industry
Section 1  The macroeconomic environment
Section 2  The industrial policy towards pharmaceutical industry
Section 3  The approval policy of medicine
Section 4  The goal of current medical reform
Chapter 6  The analysis on factors mattered investment in pharmaceutical industry of China
Section 1  The risk analysis over development in pharmaceutical industry
1. The policy in pharmaceutical and medical industry
2. R&D capacity
3. The system of procurement and marketing
Section 2  The current problem in pharmaceutical industry
Chapter 7  The analysis on regional development in China’s pharmaceutical industry
Section 1  Northern China
1.  The analysis on regional drug demand between 2007 and 2010
2.  The development and industrial pattern in regional pharmaceutical industry
3.  The analysis over competition and major player in regional pharmaceutical industry
4.  The M&A trend and feasibility of regional pharmaceutical industry
Section 2  Eastern China
1.  The analysis on regional drug demand between 2007 and 2010
2.  The development and industrial pattern in regional pharmaceutical industry
3.  The analysis over competition and major player in regional pharmaceutical industry
4.  The M&A trend and feasibility of regional pharmaceutical industry
Section 3  Central region
1.  The analysis on regional drug demand between 2007 and 2010
2.  The development and industrial pattern in regional pharmaceutical industry
3.  The analysis over competition and major player in regional pharmaceutical industry
4.  The M&A trend and feasibility of regional pharmaceutical industry
Section 4  North-eastern region
1.  The analysis on regional drug demand between 2007 and 2010
2.  The development and industrial pattern in regional pharmaceutical industry
3.  The analysis over competition and major player in regional pharmaceutical industry
4.  The M&A trend and feasibility of regional pharmaceutical industry
Section 5  Southern China
1.  The analysis on regional drug demand between 2007 and 2010
2.  The development and industrial pattern in regional pharmaceutical industry
3.  The analysis over competition and major player in regional pharmaceutical industry
4.  The M&A trend and feasibility of regional pharmaceutical industry
Section 6  South-western region
1.  The analysis on regional drug demand between 2007 and 2010
2.  The development and industrial pattern in regional pharmaceutical industry
3.  The analysis over competition and major player in regional pharmaceutical industry
4.  The M&A trend and feasibility of regional pharmaceutical industry
Section 7  North-western region
1.  The analysis on regional drug demand between 2007 and 2010
2.  The development and industrial pattern in regional pharmaceutical industry
3.  The analysis over competition and major player in regional pharmaceutical industry
4.  The M&A trend and feasibility of regional pharmaceutical industry
Chapter 8  The Current M&A in pharmaceutical industry of P.R.C.
Section 1 Background analysis in M&A of China’s pharmaceutical industry
Section 2 Analysis of status quo in M&A in China’s pharmaceutical industry
Section 3 Case analysis in M&A in China’s pharmaceutical industry
Section 4 The M&A trend analysis in pharmaceutical industry
Chapter 9 The analysis on potential blocks in China’s pharmaceutical industry
1. From policy perspective
　2. Issue on consolidation
　3. From capital side
　4. Engineering hurdles
　5.  Productive side
Chapter 10  Case analysis in M&A of pharmaceutical industry among foreign counterparts
Section 1  Pfizer Pharmaceuticals Limited purchasing Pharmacia
1.  The analysis on background and motives of M&A
2.  The analysis over M&A procedure and solution
3.  The analysis on core value of M&A and merging strategy
Section 2  Glaxo Wellcome purchasing Smith Kline Beecham
1.  The analysis on background and motives of M&A
2.  The analysis over M&A procedure and solution
3.  The analysis on core value of M&A and merging strategy
Section 3  Bayer AG purchasing three brand names of Dongsheng Bio-Technology Development Co., Ltd
1.  The analysis on background and motives of M&A
2.  The analysis over M&A procedure and solution
3.  The analysis on core value of M&A and merging strategy
Section 4  Bayer AG purchasing Schering AG
1.  The analysis on background and motives of M&A
2.  The analysis over M&A procedure and solution
3.  The analysis on core value of M&A and merging strategy
Section 5   DSM purchasing Roche (Shanghai) Vitamin Co., Ltd
1.  The analysis on background and motives of M&A
2.  The analysis over M&A procedure and solution
3.  The analysis on core value of M&A and merging strategy
Section 6  Bausch &Lomb acquiring Shandong C.P.Freda Pharma.Co.,Ltd.,
1.  The analysis on background and motives of M&A
2.  The analysis over M&A procedure and solution
3.  The analysis on core value of M&A and merging strategy
Section 7  Novartis International AG purchasing Chiron Corporation
1.  The analysis on background and motives of M&A
2.  The analysis over M&A procedure and solution
3.  The analysis on core value of M&A and merging strategy
Section 8  Merck KgaA purchasing Serono Pharmaceutical Schweiz.
1.  The analysis on background and motives of M&A
2.  The analysis over M&A procedure and solution
3.  The analysis on core value of M&A and merging strategy
Chapter 11  The Trend of Foreign Pharmaceutical Companies Purchasing Chinese firms
Section 1  The analysis on development in pharmaceutical industry home and broad
1. Investment pattern
2. Targeted area for investment
3. Market performance
4. Mix product in investment
5. Trend for investment
Section 2  The investment and M&A by Pfizer Pharmaceuticals Limited in China
1.  The business performance of Pfizer Pharmaceuticals Limited in China
2.  The core competitiveness of Pfizer Pharmaceuticals Limited
3.  The analysis on prospect investment and M&A of Pfizer Pharmaceuticals Limited
Section 3   The investment and M&A by GlaxoSmithKline PLC in China
1.  The business performance of GlaxoSmithKline PLC in China
2.  The core competitiveness of GlaxoSmithKline PLC
3.  The analysis on prospect investment and M&A of GlaxoSmithKline PLC
Section 4   The investment and M&A by Wyeth in China
1.  The business performance of Wyeth in China
2.  The core competitiveness of Wyeth
3.  The analysis on prospect investment and M&A of Wyeth
Section 5   The investment and M&A by Novartis International AG in China
1.  The business performance of Novartis International AG in China
2.  The core competitiveness of Novartis International AG
3.  The analysis on prospect investment and M&A of Novartis International AG
Section 6  The investment and M&A by Sanofi Aventis in China
1.  The business performance of Sanofi Aventis in China
2.  The core competitiveness of Sanofi Aventis
3.  The analysis on prospect investment and M&A of Sanofi Aventis
Section 7   The investment and M&A by Johnson & Johnson in China
1.  The business performance of Johnson & Johnson in China
2.  The core competitiveness of Johnson & Johnson
3.  The analysis on prospect investment and M&A of Johnson & Johnson
Section 8   The investment and M&A by Merck Sharp and Dohme in China
1.  The business performance of Merck Sharp and Dohme in China
2.  The core competitiveness of Merck Sharp and Dohme
3.   The analysis on prospect investment and M&A of Merck Sharp and Dohme
Chapter 12  Case study on M&A in domestic pharmaceutical industry
Section 1  Harbin Pharmaceutical Group purchasing Harbin No. 3 TCM Factory
1. The analysis on background and motives of M&A
2. The analysis of M&A procedures and solution
3. The analysis on M&A value and merging strategy
Sector 2  Beijing Double-Crane Pharmaceutical Co.,Ltd buying Kunshan General Pharmaceutical Factory
1. The analysis on background and motives of M&A
2. The analysis of M&A procedures and solution
3. The analysis on M&A value and merging strategy
Sector 3  Sanjiu Enterprise Group buying Sichuan Changzheng Pharmaceutical Co., Ltd
1. The analysis on background and motives of M&A
2. The analysis of M&A procedures and solution
3. The analysis on M&A value and merging strategy
Section 4  Topsun Group buying Qianjiang Pharmaceutical Co., Ltd
1. The analysis on background and motives of M&A
2. The analysis of M&A procedures and solution
3. The analysis on M&A value and merging strategy
Section 5  Lenovo Hongyi acquiring stock from Nanjing Simcere Pharmaceuticals
1. The analysis on background and motives of M&A
2. The analysis of M&A procedures and solution
3. The analysis on M&A value and merging strategy
Section 6  Taiji Pharmaceutical Co., Ltd buying state-owned stock from Chongqing Academy of Chinese Materia Medics
1. The analysis on background and motives of M&A
2. The analysis of M&A procedures and solution
3. The analysis on M&A value and merging strategy
Section 7  China Resources (Holdings) Co., Ltd. acquiring stock from Shandong Dong-e E-Jiao Group
1. The analysis on background and motives of M&A
2. The analysis of M&A procedures and solution
3. The analysis on M&A value and merging strategy
Section 8  Shanhai Pharmaceutical (Group) Co., Ltd taking over Shandong Xinhua Pharmaceutical Company Limited
1. The analysis on background and motives of M&A.
2. The analysis of M&A procedures and solution
3. The analysis on M&A value and merging strategy
Chapter 13  The Major case analysis of M&A and core competitiveness in pharmaceutical industry of P.R.C.
Section 1  North China Pharmaceutical Group Corporation
1.  The business performance
2.  The R&D capacity
3.  The products mix
4.  The marketing savvies
5.  The trend and feasibility of M&A and development strategy
Section 2  Guangzhou Pharmaceutical Holding Limited
1.  The business performance
2.  The R&D capacity
3.  The products mix
4.  The marketing savvies
5.  The trend and feasibility of M&A and development strategy
Section 3  Harbin Pharmaceutical Group
1.  The business performance
2.  The R&D capacity
3.  The products mix
4.  The marketing savvies
5.  The trend and feasibility of M&A and development strategy
Section 4  Beijing Tongrentang Group Co., Ltd
1.  The business performance
2.  The R&D capacity
3.  The products mix
4.  The marketing savvies
5.  The trend and feasibility of M&A and development strategy
Section 5  Tasly Group
1.  The business performance
2.  The R&D capacity
3.  The products mix
4.  The marketing savvies
5.  The trend and feasibility of M&A and development strategy
Section 6  Shandong Lukang Pharmaceutical Group Co., Ltd
1.  The business performance
2.  The R&D capacity
3.  The products mix
4.  The marketing savvies
5.  The trend and feasibility of M&A and development strategy
Section 7  Shenzhen Neptunus Interlong Bio-technique Co., Ltd
1.  The business performance
2.  The R&D capacity
3.  The products mix
4.  The marketing savvies
5.  The trend and feasibility of M&A and development strategy
Section 8  Yangtze River Pharmaceutical Group
1.  The business performance 
2.  The R&D capacity
3.  The products mix
4.  The marketing savvies
5.  The trend and feasibility of M&A and development strategy
Section 9  Shanhai Pharmaceutical (Group) Co., Ltd
1.  The business performance
2.  The R&D capacity
3.  The products mix
4.  The marketing savvies
5.  The trend and feasibility of M&A and development strategy
Section 10  Beijing Double-Crane Pharmaceutical Co.,Ltd
1.  The business performance
2.  The R&D capacity
3.  The products mix
4.  The marketing savvies
5.  The trend and feasibility of M&A and development strategy
Section 11  Taiji Pharmaceutical Co., Ltd
1.  The business performance
2.  The R&D capacity
 3.  The products mix
4.  The marketing savvies
5.  The trend and feasibility of M&A and development strategy
Chapter 14  The Analysis on Possibility for M&A on Chinese Pharmaceutical Companies
Section 1  The analysis on possibility for M&A on pharmaceutical tycoons
1.  Sanjiu Enterprise Group
1.1 The corporate performance
1.2 The products mix
1.3 Marketing strategy
1.4 Core competitiveness
1.5 The analysis on value and feasibility of M&A
2. China Worldbest Group Co. Ltd
2.1 The corporate performance
2.2 The products mix
2.3 Marketing strategy
2.4 Core competitiveness
2.5 The analysis on value and feasibility of M&A
3. Dongsheng Bio-Technology Development Co., Ltd
3.1 The corporate performance
3.2 The products mix
3.3 Marketing strategy
3.4 Core competitiveness
3.5 The analysis on value and feasibility of M&A
4. Shijiazhuang Pharmaceutical Group
4.1 The corporate performance
4.2 The products mix
4.3 Marketing strategy
4.4 Core competitiveness
4.5 The analysis on value and feasibility of M&A
Chapter 15  The M&A of Pharmaceutical Industry Towards Related Sectors
Section 1  The industrial chain on pharmacy
Section 2  The possibility of M&A between pharmas and drug material suppliers
Section 3  The possibility of M&A between pharmas and drug retailers
Chapter 16  The Risk Analysis of M&A in China’s Pharmaceutical Industry