China's Pharma and Biotech Sector Sees Over 100 M&A Deals This Year Amid Strategic Restructuring

　　【Pharmaceutical Network | Industry News】Recently, the State Administration for Market Regulation (SAMR) published the "Case of SDIC High-Tech Industrial Investment Co., Ltd. Acquiring Part of the Assets of Takeda Pharmaceutical International Co., Ltd." The announcement indicates that SDIC High-Tech intends to indirectly obtain sole control over Hasten through its affiliated entity via a capital increase. Following the transaction, SDIC High-Tech will gain control over certain assets of Takeda Pharmaceutical through Hasten, which will also facilitate Takeda in repaying its debts with the proceeds from the divestiture.
 

The news of this acquisition has drawn attention within the industry. According to available data, Hasten is an innovative biopharmaceutical technology enterprise established on September 16, 2020. Reports indicate that Hasten is committed to becoming a fully integrated pharmaceutical company encompassing R&D, manufacturing, marketing, and commercial operations, with a strategic focus on age-related degenerative diseases in China. Beyond its product portfolio, Hasten will comprehensively build a commercialization team distinguished by extensive experience, rigorous training, and strong capabilities in promoting innovative therapeutics, aiming to generate a synergistic chain reaction between the acquired products and other candidates in the pipeline of its wholly-owned Ruimu Asset Management Company.
 

Analysis suggests that, as a central state-owned enterprise investment platform, SDIC may bring additional resources, management expertise, and market opportunities to Hasten, which will facilitate the subsequent development of Takeda Pharmaceutical Company Limited's non-core prescription drug business.
 

In fact, M&A and restructuring activities in the pharmaceutical and biotechnology industry have been highly active in recent years. According to publicly available data, there have already been over 100 M&A and restructuring cases in the sector this year alone.
 

Recently, in addition to SDIC Hi-Tech, other major domestic pharmaceutical companies such as Jiaying Pharmaceutical, Shanghai Pharma, and Huadong Medicine have also issued announcements regarding mergers, acquisitions, and restructuring.
 

For example, on June 18, Jiaying Pharmaceutical published an indicative announcement regarding the signing of the 《Voting Rights Entrustment Agreement》 and the 《Conditional Subscription Agreement for Non-Public Issuance of Shares》, along with a proposed change in control. Jiaying Pharmaceutical plans to issue shares to Xin Nanfang Medical Investment. Upon completion of the issuance, Xin Nanfang Medical Investment will become the controlling shareholder of Jiaying Pharmaceutical. Previously, Jiaying Pharmaceutical stated that the participation of Xin Nanfang Medical Investment would facilitate the rapid development of the company's business and foster an integration and clustering effect within the Traditional Chinese Medicine (TCM) industry.
 

On June 17, Yixintang announced that its wholly-owned subsidiary, Guangxi Yixintang, plans to acquire the assets of 11 stores held by Guangxi Baise Likang for no more than RMB 11 million. According to available information, Guangxi Baise Likang Pharmaceutical Chain Co., Ltd. was established in 2013, with a business scope covering traditional Chinese medicine decoction pieces, Chinese patent medicines, chemical drug preparations, biochemical drugs, and antibiotic preparations, among others.
 

On May 27, Shanghai Pharmaceuticals Group announced that it had entered into an equity transfer agreement with Shanghai New Pioneer, pursuant to which Shanghai New Pioneer agreed to transfer its 100% equity interest in Shanghai Pharma Biopharmaceutical to the Company at a consideration of RMB 751 million. Upon completion of the acquisition, Shanghai Pharmaceuticals Group will directly hold 100% of the equity interest in Shanghai Pharma Biopharmaceutical. It is reported that Shanghai Pharmaceuticals will enhance its independent R&D capabilities and innovation capacity through this acquisition.
 

On April 28, Huadong Medicine announced the acquisition of a 75% equity stake in Zhejiang Daor Biotechnology Co., Ltd. for RMB 487.5 million, thereby becoming its controlling shareholder. According to public disclosures, Daor Biotechnology is an R&D-focused enterprise specializing in the development of innovative biopharmaceuticals, equipped with multiple proprietary intellectual property rights and a unique protein engineering technology platform.
 

Recently, pharmaceutical companies have been continuously launching new strategic initiatives. Behind these actions, market competition among pharmaceutical enterprises has intensified. Industry insiders have pointed out that, against the backdrop of the accelerated development of the pharmaceutical sector, future activities such as strategic collaborations, exchanges, and mergers & acquisitions among pharmaceutical companies will become increasingly frequent and gradually become the norm.