Healthcare Giants Accelerate M&A Activities Amid Industry Consolidation Wave

　　In 2024, the healthcare industry witnessed relatively active mergers and acquisitions, with the number of M&A cases ranking second in the entire market. Apart from...MindrayBesides, the recent pharmaceutical leaderCR SANJIUProposed Acquisition for 6.2 Billion YuanTASLY28% shares, also becomes a major hot event in the industry. This is alsoCR SANJIUFollowing the acquisitionKunming Pharmaceutical CorporationLater, another acquisition of an A-share company was initiated.

　　TASLYDisclosed on August 4, the company's controlling shareholderTASLYThe Group and its concert parties intend toCR SANJIUIn total, they transferred 418 million shares of Tianshi Force, accounting for 28% of the company's total share capital. At the same time, Tianshi Force Group plans to transfer 74,697,500 shares of Tianshi Force (5% of the total share capital) held by it to Guoxin Investment.Equity TransferAfterward, its shareholding ratio dropped to 17.5%; the shareholding ratios of CR SANJIU and Guoxin Investment are 28% and 5%, respectively. Through this transaction, CR SANJIU will become the controlling shareholder of Tasly.Guo HuaRunhua will become the actual controller of Tasly.

CR SANJIU stated that this acquisition will help the company consolidate its leading position in the industry, enhance core competitiveness, and achieve synergy by fully integrating the resources of both parties.Traditional Chinese MedicineExtending, supplementing, and strengthening the industrial chain to leverage R&D synergy aligns with the company's vision and development strategy of "striving to be a leading enterprise in the industry."

InternationalMedical DeviceLeading companies have also been actively involved in mergers and acquisitions this year, such as globally.Medical DeviceLeading EnterpriseJohnson & JohnsonRecently announced the acquisition of V-Wave Ltd., an Israeli heart failure implant company, for up to $1.7 billion.Medical DeviceCompany V-Wave. This is following April this yearJohnson & JohnsonAnother layout in the cardiovascular field after acquiring Shockwave for approximately $13 billion.

This JuneBD MedicalAnnounced plans to pay approximately $4.2 billion in cash for Edwards Lifesciences' critical care business, marking the second-largest M&A deal in the global medical device industry in 2024.

In the medical industry, mergers and acquisitions are an important way for leading companies to acquire new product lines and stabilize the upstream and downstream industrial chain.

"Most leading companies in the medical industry supplement their product pipelines through mergers and acquisitions. By doing so, these top enterprises can solidify their position within the industry and quickly enter fields that may be less familiar to them but are rapidly growing, breaking through the ceiling of their existing businesses." — Wang Lei, Partner at BGI Co-WinSecuritiesIn an interview with the Times reporter.

Wang Lei believes that although the acquirer also needs to bear a certain high premium during the acquisition process, it is reasonable to pay a certain premium in terms of the efficiency of R&D fund utilization.

Senior pharmaceuticals industry researcher Du Yi discussed the background of the current active mergers and acquisitions from the perspective of the industry's challenges. "The overall situation of the pharmaceuticals industry is not good at present, and many companies are unable to raise funds. When the market was good before, there were many investors and financiers in the primary market, with high valuations and fast financing pace, and greater tolerance for pipelines in pre-clinical and clinical stages. Now, many companies can't secure funding, and the valuation logic has also changed. Overall, it shows low valuations, slow financing, and a need to consider many factors related to commercial value."

"Now, in the medical field, mergers and acquisitions are more realistic than IPOs. For entrepreneurs seeking an exit, being acquired is a good exit route. Not only the seller (outside the company), but also the investors will be eager to exit. As for the buyers in the acquisition, sometimes they participate in the transaction with the mindset of bottom-fishing and transformation," said Du Yi.