China's Pharma Sector Shifts from Expansion to Precision Integration in 2026

　　【Pharmaceutical Network - Industry Dynamics] Since 2026, acquisition activities among domestic pharmaceutical companies have become frequent, presenting a clear trend of parallel "horizontal strengthening" and "vertical integration," with state-owned capital accelerating its entry into the market. Industry insiders believe this reflects the accelerated transformation and upgrading of China's pharmaceutical industry from extensive expansion to refined consolidation.
 

Recent news indicates that Anhui Wanbang Pharmaceutical Technology Co.,Ltd. plans to acquire a 75.52% equity stake in Saidesheng Pharmaceutical for RMB 302.0776 million in cash, implying an overall valuation of RMB 400 million for the latter. The transaction includes performance commitments, requiring cumulative net profits of no less than RMB 109 million from 2026 to 2028.
 

It is reported that Sidesheng is a professional CRO specializing in clinical trials for innovative drugs, offering end-to-end service capabilities. The company has served over 100 clients and undertaken nearly 300 projects to date. In 2025, Sidesheng reported revenue of RMB 108.2 million and a net loss of RMB 2.68 million; in the first quarter of 2026, it recorded revenue of RMB 31.19 million and a net loss of RMB 910,000. Through this acquisition, Anhui Wanbang Pharmaceutical Technology Co., Ltd. will enhance its layout in the innovative drug sector, strengthen its core competitiveness, meet the demand for clinical research services, and provide integrated R&D solutions to its clients.
 

On June 8, Consun announced that its wholly-owned subsidiary, Consun Pharmaceutical Group, would acquire a 30% equity stake in Shanghai Huamao Pharmaceutical Co., Ltd. through the acquisition of existing shares and cash capital injection, with a total investment of RMB 191 million.
 

Shanghai Huamao Pharmaceutical is a high-tech biopharmaceutical company focused on the innovation and application of synthetic biology. Through this acquisition, Consun Pharmaceutical Group will integrate the target company’s technological platforms in synthetic biology and precision fermentation, achieving a transition fromActive Pharmaceutical IngredientVertical integration into pharmaceutical formulations, which secures the supply of core products while leveraging technological empowerment to enhance quality and reduce costs.
 

On June 4, Amoy Diagnostics Co., Ltd. announced that its controlling shareholder, Forward Investment (Hong Kong) Co., Ltd., and its actual controller and Chairman, LI-MOU ZHENG (Zheng Limou), recently signed a "Share Acquisition Agreement" with Sinopharm Group (Beijing) Technology Innovation Research Institute Co., Ltd. The parties intend to transfer 20% of the company's shares (78.021 million shares) held by them at a price of RMB 21.20 per share, with the total transfer consideration amounting to RMB 1.654 billion.
 

Amoy Diagnostics is a leading domestic enterprise in the field of tumor companion diagnostics, focusing on the area of precision medical diagnosis for tumors. Its products cover nine major types of cancer, including lung cancer, colorectal cancer, breast cancer, and gastric cancer. According to the 2025 annual report, the company achieved an annual operating revenue of RMB 1.198 billion, representing a year-on-year increase of 8.01%; net profit attributable to shareholders was RMB 361 million, a year-on-year increase of 41.74%.
 

In early June, China Resources Double-Crane announced that the transaction to acquire 100% equity interest in Nanjing Xinbai Pharmaceutical Co.Ltd. for RMB 235 million had completed the relevant industrial and commercial change registration procedures, and Nanjing Xinbai Pharmaceutical Co.Ltd. has been included in the company's consolidated financial statements since June.
 

Both China Resources Double-Crane and Boya Bio-pharmaceutical Group, the parties to this transaction, are companies within the China Resources system. This deal exemplifies CR PHARMA COMM’s recent strategic shift from external mergers and acquisitions to internal asset consolidation and optimization of its platform portfolio. It is expected to further refine China Resources Double-Crane’s business layout and resolve horizontal competition within the China Resources group.
 

　　……
 

Overall, the industry is currently transitioning from a phase of extensive expansion to one of refined consolidation. In the future, "puzzle-piece" acquisitions with synergistic effects, industrial consolidations backed by state-owned capital, and premium global acquisitions of companies holding high-quality assets are expected to remain highly frequent in China for an extended period.
 

　　Disclaimer: Under no circumstances shall the information contained herein or the opinions expressed constitute investment advice to any person.