Medical equipment mergers and acquisitions tide: local and foreign companies compete

On September 18, the Ministry of Industry and Information Technology and the National Health and Family Planning Commission jointly held a working group meeting to promote the development and application of domestic medical equipment in Beijing. This is the first joint meeting of the ministries and commissions after the National Health and Wellness Conference to implement the central spirit and accelerate the development and application of domestic medical equipment. Therefore, it is considered to have a strong policy signal.

Going out: Chinese capital that is not bad money

Tuttlingen, located near the Danube, has a population of more than 30,000, but is the medical device manufacturing center throughout Europe, and is known as the world's surgical instrument capital. In April this year, China's listed company Yuyue Medical established a wholly-owned subsidiary here with no more than 10 million euros. Yuyue Medical said in the announcement that the company will actively collect cutting-edge information and represent high-quality German medical equipment. Selling in the domestic market, looking for overseas business cooperation and M&A opportunities.

It is different from the situation of the pharmaceutical company "strong and strong". The product cycle of medical devices is short. Although small companies do not have the ability and big companies to be “hard” in sales and R&D, they are more likely to respond quickly to the market, focus on a certain field or a certain technology, and develop more efficiently and easily develop the most. Suitable cutting edge products. In order to consolidate the market position, large companies have continued to acquire M&A products with the aim of expanding product lines, expanding market share or eliminating potential competitors in disguise. This has become an eternal model for medical device companies to survive. Guotai Junan's research report believes that medical devices are technology-driven industries, leading companies focus on the market side, and R&D is “difficult to turn around”. It is necessary to protect its position and avoid being subverted by small and medium-sized innovation companies. M&A is to break the product technology. Direct means. The highly “fragmented” market ceiling effect is obvious, and companies need to constantly try to get involved in new areas.

The industry continues to be hot, allowing Chinese capital to “buy, buy and buy” hands out of the country. Recently, at the China Medical Devices Summit held at the Suzhou Bio-Nano Technology Park, Chen Jian, executive vice president of Yuyue Technology Group, said, “In the past few years, the domestic medical equipment mergers and acquisitions, especially in the early stage of investment, have been industrialized. People, I think the price is relatively outrageous, the stubbornness of many foreign companies and technologies, I think the valuation is even more reasonable than the Chinese equipment industry."

Chen Jie, the founding partner of Yuansheng Ventures, said to the health point, "I think it is just like buying a house. You think China's price is high. You want to go abroad to see some similar technology. The price is lower, but in fact you If you buy a house in a foreign country, you can't run there. The final problem is to apply foreign technology in China."

The acquisition and merger of China's medical device industry is very popular. PwC's "Review and Outlook of China's Medical Device Industry M&A" released in June this year can give a glimpse of the whole leopard. In 2015, there were 81 medical device M&A transactions (excluding overseas M&A) in the Chinese market, an increase of 17% from 69 in 2014. Of these, 57 transactions were from local strategic buyers, followed by venture capital transactions (12), private equity transactions (7) and foreign strategic buyers (5).

In terms of transaction value, the value of more than 16 transactions is more than 50 million US dollars, and the average transaction value is 56 million US dollars. This figure is 83% higher than that of 2014. The total value of transactions is 3.9 billion US dollars, up from last year. 156%.

PricewaterhouseCoopers estimates that both the number of trades in the industry and the value of the transaction have reached record highs. The investment behind it comes mainly from strategic buyers, private equity, venture capital and offshore channels.

Ye Lin, head of Asia-Pacific medical research at Goldman Sachs Asia, believes that the future trend in the medical device industry is mergers and acquisitions. In the degree of integration with overseas, whether it is technological innovation or expanding overseas markets, we can see that Chinese companies are going global, and are making a global layout, including entering the US market and the European market.

Of course, the Chinese are also paying a lot of tuition fees in the process of going out. Chen Jian said that the first generation of Chinese medical device industry practitioners, "although some people speak English well, they may not have international thinking and ability." Now many companies are engaged in "physical platter" but overseas mergers and acquisitions. More is the fusion of culture and the penetration of culture.

The role of cultural soft power in cross-border mergers and acquisitions is not sensational.

Active Pharmaceutical Ingredients

Active Pharmaceutical Ingredients(API) refer to the raw materials used in the production of various preparations. They are the effective ingredients in the preparations. They are various powders, crystals, extracts, etc., prepared by chemical synthesis, plant extraction or biotechnology, but Substances that the patient cannot take directly. API is intended to be used in any substance or mixture of substances in the manufacture of pharmaceuticals, and when used in pharmaceuticals, it becomes an active ingredient of the pharmaceuticals. Such substances have pharmacological activity or other direct effects in the diagnosis, treatment, symptom relief, treatment or prevention of diseases, or can affect the function or structure of the body. According to its source, active pharmaceutical ingredients are divided into two categories: synthetic chemical active Pharmaceutical ingredients and natural chemical active Pharmaceutical ingredients.

Chromium Picolinate,Tianeptine,6-Paradol,Aminobutyric acid,acetylcysteine,L-Carnosine

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