Qianjin Pharmaceutical Announces $890 Million Acquisition of Two Subsidiaries to Strengthen Integrated Drug Portfolio

On February 11, 2025, ZhuZhou QianJin Pharmaceutical Co.,Ltd. issued nearly 40 announcements in succession.

Among these, the announcement regarding the initiation of the company’s restructuring and acquisition has drawn market attention. One of the announcements stated that the company plans to acquire a 28.92% equity stake in Hunan Qianjin Xiangjiang Pharmaceutical Co., Ltd. (hereinafter referred to as “Qianjin Xiangjiang”), held by Zhuzhou State Investment Group and Liebang Kangtai, through the issuance of shares. It is reported that the 28.92% equity interest in Qianjin Xiangjiang Pharmaceutical is valued at RMB 361 million.

The announcement further stated that the company plans to acquire a 67.06% equity interest in Hunan Qianjin Xieli Pharmaceutical Co., Ltd. (hereinafter referred to as “Qianjin Xieli”) held by Zhuzhou State Investment Group and 20 natural persons, including Huang Yang, through the issuance of shares and cash payments; and to acquire a 0.94% equity interest in Qianjin Xieli held by Zhong Linbo through cash payments, thereby acquiring a total of 68.00% equity interest in Qianjin Xieli. It is reported that the 68.00% equity interest in Qianjin Xieli is valued at RMB 263 million.

The aforementioned two acquisitions are proposed to be valued at a combined total of nearly RMB 624 million.

Qianjin Xiangjiang was established in 1998 through the restructuring of the former Zhuzhou Xiangjiang Pharmaceutical Factory and is a controlling subsidiary of the listed company “Qianjin Pharmaceutical.” Its registered capital is RMB 48 million.

The company's business scope includes the production and sales of chemically synthesized active pharmaceutical ingredients (APIs) and solid dosage forms, with main dosage forms including tablets, hard capsules, granules, powders, and solutions (for external use).

The company’s main products include 19 varieties such as Lamivudine Tablets, Valsartan Capsules, and Enalapril Maleate Tablets. It currently holds 13 invention patents, 10 utility model patents, 28 design patents, and 43 registered trademarks, along with more than 50 drug production approval documents. The two trademarks “Xiangjiang” and “Jiangangling” have been recognized as “Famous Trademarks of Hunan Province.”

Hunan Qianjin Xieli Pharmaceutical Co., Ltd, established in 2012 through restructuring, is a holding subsidiary of ZhuZhou QianJin Pharmaceutical Co.,Ltd. It is a pharmaceutical enterprise integrating traditional Chinese patent medicines and chemically synthesized drugs. According to information on its official website, the company is located in the Zhuzhou High-tech Industrial Development Zone, covering an area of nearly 72,000 square meters with a building area of approximately 33,145 square meters. It currently employs over 400 staff members, including more than 100 mid-to-senior level professional and technical personnel. Like Qianjin Xiangjiang, Qianjin Xieli has received numerous honors and is recognized as a “High-Tech Enterprise” in Hunan Province and an enterprise under Hunan Province’s “Little Giant” Program. The company holds more than 20 national drug approval numbers.

Hunan Qianjin Xieli Pharmaceutical Co., Ltd.’s flagship product, Entecavir Dispersible Tablets, is a first-line antiviral medication for hepatitis B both domestically and internationally. In 2017, it was listed on the China Pharmaceutical Brand List (Rui Bang) and has passed the Consistency Evaluation for Generic Drugs. Silibinin Meglumine Tablets are a first-line clinical medication for liver protection and have successively received numerous honors, including “Famous Trademark” and “Well-Known Brand” in Hunan Province. The annual sales of Hunan Qianjin Xieli’s flagship products, Entecavir Dispersible Tablets and Silibinin Meglumine Tablets, have each exceeded RMB 100 million.

Amlodipine Besylate is included in the National Reimbursement Drug List and the National Essential Medicines List; it is a first-line antihypertensive agent in China for the long-term management of hypertension. Tripterygium Glycosides Tablets are classified as Class A products under the National Reimbursement Drug List, and are also included in the National Essential Medicines List and the National Low-Price Drug List. In addition, products such as Xiaoaiping Dispersible Tablets, Guilu Erxian Ointment, and Zinc Gluconate Tablets demonstrate strong efficacy and boast broad market prospects.

According to public records, Qianjin Xiangjiang Pharmaceutical is a joint-stock company initiated and established by the listed company Qianjin Pharmaceutical in May 1998, with its shareholding ratio remaining consistently at 51.00% since inception; Qianjin Xieli Pharmaceutical was acquired by the listed company in January 2013, with its shareholding ratio remaining consistently at 32.00% since the acquisition.

As the parent company, Qianjin Pharmaceutical has an even more legendary development history.

The earliest predecessor of Qianjin Pharmaceutical was the Traditional Chinese Medicine Processing Factory of Zhuzhou Municipal Pharmaceutical Company, established in 1966. From its inception until the early 1980s, the factory operated at a loss and was once listed by the Zhuzhou Municipal People's Government as a candidate for closure, suspension, merger, or conversion. In 1984, the enterprise adjusted its leadership team, began to emerge from its difficulties, and embarked on a path of healthy development. Notably, following its restructuring in 1993, the company achieved sustained rapid growth, ranking among the top 50 key enterprises in China's traditional Chinese medicine industry in 1998. In recent years, its comprehensive economic performance indicators have ranked among the highest in Hunan Province's same industry.

On April 11, 2024, ZhuZhou QianJin Pharmaceutical Co.,Ltd. announced its 2023 annual report. During the reporting period, the company’s operating revenue reached RMB 3.798 billion, a year-on-year decrease of 5.66%; total profit amounted to RMB 460 million, a year-on-year increase of 3.28%; and net profit attributable to shareholders of the listed company was RMB 320 million, a year-on-year increase of 5.92%.

Particularly noteworthy is Qianjin Pharmaceutical’s Fuke Qianjin Tablets.

The company initiated the development of “Fuke Qianjin Tablets” in 1976, obtained production approval in 1979 (the inaugural year of the registered “Mudan” trademark), and concurrently commenced trial production. In 1981, due to operational difficulties, the company was designated by the Zhuzhou Municipal Government for closure, suspension, merger, or conversion. It was precisely during this dramatic year that breakthroughs were achieved in the sterilization technology for Fuke Qianjin Tablets.

With Fuke Qianjin Tablets being rated as a high-quality product of Hunan Province and changes in leadership, Qianjin Pharmaceutical began to develop other product lines. Mudan Brand Naolejing was rated as a high-quality product of Hunan Province in 1984. Subsequently, Fuke Qianjin Tablets were rated as a high-quality product by the State Administration of Pharmaceutical Industry. After being exported to Singapore in 1993, they were included in the National Essential Drugs List and recognized as a Famous Brand Product of Hunan Province in 1995.

It can be said that, leveraging its flagship product Qianjin Gynecological Tablets, Qianjin Pharmaceutical has progressively refined its business operations, which now encompass pharmaceutical manufacturing, pharmaceutical trading, hygiene products, female-oriented alcoholic beverages, natural lotions, and exclusive aromatic products. The group comprises seven industrial enterprises—including Qianjin Pharmaceutical, Qianjin Xiangjiang Pharmaceutical, Qianjin Xieli Pharmaceutical, Qianjin Medicinal Materials, and Qianjin Hygiene Products—three commercial enterprises such as Qianjin Grand Pharmacy, Qianjin Medicine, and Qianjin Cultural Plaza, as well as one investment enterprise, employing approximately 7,000 people in total. Among these, Qianjin Pharmaceutical is recognized as one of China’s Top 100 Pharmaceutical Enterprises, a National High-Tech Enterprise, and a National Pilot Demonstration Unit for the Integration of Informatization and Industrialization.

In addition to Fuke Qianjin Tablets, the main products of Qianjin Pharmaceutical include Buxue Yimu Pills (Granules), Valsartan Capsules, Piperazine Ferulate Tablets, Silibinin Meglumine Tablets, Amlodipine Besylate Tablets, and a series of specialized feminine hygiene cotton pads. Performance data for the first three quarters of 2024 shows that Qianjin Pharmaceutical achieved revenue of RMB 2.715 billion, ranking 26th in the traditional Chinese medicine industry.

Hunan Province, where Qianjin Pharmaceutical is located, has designated the biomedical sector as one of its 20 emerging and advantageous industrial chains. By the end of the 14th Five-Year Plan period, the total output value of Hunan’s pharmaceuticals, medical devices, and cosmetics industries is projected to exceed RMB 300 billion. In October 2024, the General Office of the People’s Government of Hunan Province issued the “Several Opinions on Promoting Innovative Development of the Biomedical Industry,” providing robust policy support for the sector’s growth. These measures cover areas such as R&D and innovation, enterprise scaling and strengthening, industrial layout and park development, biomedical industry advancement within the Hunan Pilot Free Trade Zone, clinical application of innovative products, and enhanced factor guarantees.

ZhuZhou QianJin Pharmaceutical Co.,Ltd. is also seizing the opportunity. In fact, signs of this transaction first emerged in August 2024. Upon completion of the acquisition, ZhuZhou QianJin Pharmaceutical Co.,Ltd.’s shareholding in Hunan Qianjin Xiangjiang Pharmaceutical Co., Ltd. will increase to 79.92%, and its stake in Hunan Qianjin Xieli Pharmaceutical Co., Ltd will rise to 100.00%.

It is worth noting that, as a state-owned enterprise, Qianjin Pharmaceutical’s controlling shareholder is Zhuzhou State Investment Group, with its actual controller being the State-owned Assets Supervision and Administration Commission of the Zhuzhou Municipal People’s Government. According to the transaction announcement, this deal represents one of the key measures to strengthen group-level control and accelerate the implementation of its strategic initiatives.

ZhuZhou QianJin Pharmaceutical Co.,Ltd. believes that this acquisition will help strengthen the management and control over Hunan Qianjin Xiangjiang Pharmaceutical Co., Ltd. and Hunan Qianjin Xieli Pharmaceutical Co., Ltd., enhance overall group governance and business segment synergy, and facilitate the smooth implementation of its “one core, two auxiliaries” main business strategic plan.

According to the Strategic Planning Outline of Qianjin Pharmaceutical (2024–2031), the Company will leverage its marketing and operational mechanism advantages to strengthen and expand its three industrial enterprises: Qianjin Pharmaceutical, Qianjin Xiangjiang, and Qianjin Xieli. Exclusive products will undergo continuous deepening of clinical research and intensified academic promotion, while generic drug products will maximize commercial value through cost reduction, efficiency improvement, and multi-SKU operations. Furthermore, following the merger, project initiation for industrial products across the three enterprises will be coordinated. By integrating internal and external R&D resources and adopting a strategy encompassing in-house R&D, commissioned development, and acquisition, the Company will supplement its marketing teams with suitable product varieties, thereby building a product pipeline reserve tailored to Qianjin’s operational model.

In other words, Qianjin Xiangjiang Pharmaceutical and Qianjin Xieli Pharmaceutical have already refined their business strategies and integrated their production, sales, and R&D systems, establishing a relatively stable and mature framework for product research and development, manufacturing, and marketing. Following the acquisition, they will become key components of the Western medicine division of Qianjin Pharmaceutical.

M&A and restructuring among central state-owned pharmaceutical enterprises are accelerating. Domestic M&A and restructuring activities in the pharmaceutical industry since 2025 have continued the frequent pace observed last year. On February 6, China Resources Sanjiu announced that it had received the “Reply on Matters Concerning China Resources Sanjiu Pharmaceutical Co., Ltd.’s Acquisition of Tasly Pharmaceutical Group Co., Ltd.,” approving China Resources Sanjiu’s acquisition by agreement of shares in Tasly Pharmaceutical Group Co., Ltd. held separately by seven entities, including Tasly Biopharmaceutical Industrial Group Co., Ltd.

On the same day, Bide Pharma released a transaction plan, proposing to issue shares to acquire partial equity in Zhuhai Weibo Investment Co., Ltd. and raise matching funds, which is expected to constitute a major asset restructuring and related-party transaction.

Earlier, Sansure Biotech announced its plan to acquire 100% equity interest in Zhongshan Weiming Haiji Biopharmaceutical Co., Ltd. for RMB 807.5 million, thereby expanding into the growth hormone business. Meanwhile, the equity transaction agreement announced by Shanghai Pharmaceuticals and Hutchison Whampoa Medicine marked the first M&A deal of the year.

Reasonable mergers and acquisitions (M&A) and restructuring help enhance the strength of pharmaceutical companies and achieve optimized resource allocation. Industry insiders have also stated that with the continuous development of the pharmaceutical industry and the rising level of industry concentration, large pharmaceutical companies can take the lead in securing a favorable position amidst industry transformation by integrating resources through M&A and restructuring.

References:

Qianjin Pharmaceutical Official Website

State-Owned TCM Enterprise Moves Decisively, Plans to Acquire Equity Stakes in Two Subsidiaries for Over RMB 600 Million