Multinational Pharma Giants Accelerate Strategic Moves Amid Industry Transformation

　　【Pharmaceutical Network Industry Dynamics】Under the increasing changes in the pharmaceutical industry, many multinational pharmaceutical companies have recently launched new strategies. At the same time, organizational restructuring has also started to accelerate, with spin-offs, business integration, investment expansion, and other measures becoming the norm. Notably, multinational pharmaceutical companies have continued to make frequent moves in these areas recently.
 

Multinational pharmaceutical companies frequently adjust their structures, with acquisitions and spin-offs becoming the norm.
 

On July 7, reports indicated that Merck & Co. is in advanced negotiations to acquire Seagen, aiming to finalize the acquisition of this cancer biotechnology company within the next few weeks to expand its oncology drug business. The deal could be valued at approximately $40 billion or more, with both companies discussing a purchase price of over $200 per share. They are seeking to reach an agreement by or before Merck's quarterly earnings announcement on July 28.
 

On July 6, GlaxoSmithKline CEO Emma Walmsley announced that the company's shareholders had voted in favor of spinning off the consumer healthcare business, with the new company Haleon's shares set to begin trading on July 18 local time. According to reports, at the GlaxoSmithKline shareholder meeting vote, 99.8% of investors supported the two resolutions required for the spin-off of Haleon. In response, the CEO of GlaxoSmithKline stated that the shareholder approval for the spin-off of the consumer healthcare business confirmed that the British pharmaceutical company’s decision to reject Unilever's $50 billion offer to acquire its joint venture with Pfizer was correct.
 

On July 5, AstraZeneca announced that it would acquire TeneoTwo for up to $1.27 billion to strengthen its hematology oncology pipeline. The company will pay an upfront payment of $100 million upon completion of the transaction. Depending on the achievement of development milestones, up to $805 million may be paid in the future. Additionally, up to $360 million in extra payments could be made to TeneoTwo shareholders based on commercial-related milestones.
 

Recently, Sandoz, the generic drug business unit under Novartis, also announced externally that Novartis will decide by the end of this year whether to spin off or sell Sandoz. It is reported that in April this year, Novartis adjusted its new global strategy and launched a completely new organizational structure and operating model, positioning innovative drugs and digitalization as key directions for transformation. To this end, the company will also carry out large-scale layoffs of 8,000 employees. Just at the Novartis headquarters in Switzerland, 1,400 jobs will be cut, accounting for 12% of the total number of employees in Switzerland.
 

　A large number of multinational pharmaceutical companies are accelerating investment and expanding production.
 

July 6th Update: Exyte GmbH is constructing an mRNA Technology Center for Wacker Chemie AG at their biotechnology site in Halle, Germany. This center will produce messenger ribonucleic acid (mRNA) active ingredients for pharmaceutical products such as coronavirus vaccines and cancer treatments. The facility spans a total area of 7,400 square meters, including 1,600 square meters of cleanroom space, equipped with four new production lines. Part of the capacity will be reserved for the German government to prepare for future pandemic response plans.
 

Recently, Boehringer Ingelheim, life science company Evotec SE, and in vitro diagnostics company bioMérieux announced the establishment of a joint venture to develop next-generation antibiotics and actionable diagnostic methods to combat antimicrobial resistance (AMR). This joint venture has a total investment of 40 million euros, with its headquarters located in Lyon, France. Boehringer Ingelheim, as the main investor, contributed 30 million euros, while Evotec and bioMérieux each invested 5 million euros.
 

In addition, AstraZeneca recently made a formal announcement at the Third Qingdao Summit for Leaders of Multinational Corporations that it will expand its investment in China. The company plans to invest in building a production and supply base in Qingdao, Shandong, and establish a regional headquarters. At the same time, AstraZeneca also intends to invest in constructing a production and supply base for the inhalation aerosol Budigefu in the Qingdao High-tech Industrial Development Zone. Industry insiders believe this fully demonstrates multinational corporations' continued confidence in China's economy and will further fulfill AstraZeneca's long-term commitment to being rooted in China and serving China.
 

Disclaimer: In any case, the information or opinions expressed in this article do not constitute investment advice to any person.