Foreign drug dealers increase their efforts to purchase enclosures in the domestic pharmaceutical market

In the face of the Chinese pharmaceutical market, foreign drug dealers are no longer satisfied with simply selling, setting up factories, and setting up R&D centers here. Instead, they begin to directly acquire domestic pharmaceutical companies and quickly enter new channels. Bayer, Germany, has acquired Tung Shing's Gabriel's “White Plus Black” in China. Swiss Novartis acquired the vaccine company Zhejiang Tianyuan.

Sanofi, the world's fifth-largest pharmaceutical company, announced on October 31 that it will acquire China's pharmaceutical producer and distributor, Meihua Sunstone Group (Nasdaq: BJGP, US$52.06 million) for US$520.6 million. Sunstone), the amount of mergers and acquisitions refreshed the German Bayer Pharmaceutical 1.072 billion yuan mergers and acquisitions; on November 1, the global pharmaceutical company Nycomed announced that the acquisition of Guangdong Tianpu Biochemical Pharmaceutical Co., Ltd. 51.34% stake in the acquisition of 214 million US dollars (About RMB 1.43 billion). The two single purchases amounted to approximately RMB 4.9 billion.

In the view of a senior person in the Shanghai medical community, Sanofi’s conservative and conservative style has taken several shots in the Chinese market, reflecting the “attractiveness” of the Chinese pharmaceutical market.

Since the registration period for non-prescription drugs in China is about three to four years, if new OTC products are imported from overseas, it will take some time for related drugs to be listed. For foreign pharmaceutical companies that urgently need to expand in the Chinese OTC market, mergers and acquisitions can directly obtain branded drugs and sales channels.

Sanofi-Aventis chief executive Wei Bach said: "The acquisition of BMP Sunstone will bring us a new distribution channel, and the Chinese pharmaceutical market will generate a third of sales from these channels in the next few years."

The Chinese market is becoming a hotly contested place for foreign drug dealers. In addition to OTC-type enterprises, leading companies in the market segments such as Guangdong Tianpu are also favored by foreign pharmaceutical companies. On the 1st, the global pharmaceutical company Nycomed spent USD 210 million to acquire a 51.34% stake in Guangdong Tianpu Biochemical Pharmaceutical Co., Ltd. Nycoming said that China has become one of the fastest growing pharmaceutical markets in the world. The transaction will provide a commercial basis for the expansion of Nycomed's own products in the Chinese market, and will significantly expand its business in China.

A senior person in the pharmaceutical industry stated that “If you gradually bring your own world-leading products to the Chinese market, the domestic approval process will be long, and it will be difficult to lay out sales channels. The result will be several years later. Major companies hope to seize the opportunity. So more and more mergers and acquisitions will take place."

The SFDA Southern Medicine Economic Research Institute predicts that the growth of the Chinese pharmaceutical market in 2011 is expected to be as high as 24%, reaching a scale of 938.8 billion yuan; the growth of China's pharmaceutical industry's total output value is also expected to maintain a 23% increase, exceeding 1.5 trillion yuan. At the same time, due to the aging of the population structure, the new healthcare reform and the nation’s comprehensive payment capacity, China is expected to become the world’s second largest pharmaceutical market in the next decade.