Special Session on Hot Topics in Biopharmaceutical M&A
As mergers and acquisitions in the pharmaceutical industry gradually become more active, pharmaceutical companies should pay attention to resource optimization and integration, as well as industrial synergy during mergers and acquisitions and restructuring. They should conduct in-depth research on the quality of target assets, improve the quality of restructuring transactions, and avoid blind transactions. Only in this way can they truly enhance the development potential of enterprises and achieve the goal of becoming better and stronger.
On March 22nd, a special session on hot topics in biopharmaceutical M&A, hosted by the Shanghai Biomedical Industry Promotion Center and co-organized by the Shanghai Free Trade Zone No. 1 Life Science Industrial Park (referred to as 'Xingbei Free Trade Zone No. 1'), was successfully held at the industrial experience center on the first floor of Building 6 in Phase 1 of Xingbei Free Trade Zone No. 1.Yang Jiyuan, Senior Consulting Manager of the Life Sciences Division of Frost & Sullivan (Frost & Sullivan, referred to as 'Frost & Sullivan'), was invited to attend this event. She jointly conducted special exchanges with Shi Qingqing from Jintiancheng Law Firm, Fei Ying, a consulting partner at PwC's M&A advisory practice, and Tao Li, Director of the Shanghai Investment Banking Department at CITIC Construction Investment Securities, for the participants.
Yang Jiyuan, Senior Consulting Manager of the Life Sciences Division of Frost & Sullivan
Yang Jiyuan shared on 'The Current Situation and M&A Trends in Biopharmaceutical Investment and Financing'. She pointed out that since 2020, with the gradual tightening of biopharmaceutical IPOs, the amount of investment and financing in China's biopharmaceutical industry has shown a downward trend. In the past five years, global biopharmaceutical M&A transactions have been frequent, with a large number of transactions involving large multinational pharmaceutical companies as buyers worth tens of billions. In contrast, China's share of global biopharmaceutical M&A transactions is small, and the average transaction amount is also significantly higher than the global average. On the other hand, China's biopharmaceutical M&A transactions in the past five years have mainly focused on bulk drugs, traditional Chinese medicine, and innovative drugs.
Source: Frost & Sullivan analysis
Yang Jiyuan stated that in the future, there will be three major trends in biopharmaceutical M&A: First, leading companies will continue to integrate resources through mergers; second, under the business essence of 'cost reduction and efficiency improvement', 'complementary capabilities' will become a new logic for upstream and downstream integration in the industry; third, central state-owned enterprises and state-owned assets will gradually become the main force in biopharmaceutical M&A.
About the Life Sciences Division of Frost & Sullivan
The Life Sciences Division of Frost & Sullivan has professional analytical capabilities and rich project experience in the field of life sciences. Relying on Frost & Sullivan's global think tank resources and cross-industry business development platform in Greater China, the Life Sciences Division of Frost & Sullivan has unique core advantages in investment and financing services for the life sciences industry. The Life Sciences Division of Frost & Sullivan has a wide range of corporate clients in China and has established a large customer network over the past 20 years, accumulating extensive project experience in various sub-sectors of life sciences.
Project types include knowledge center projects (in-depth content, promotional activities), Pre-IPO projects (DCF valuation, business plan services), IPO listing projects (industry advisory, clinical audit, fundraising writing), market research, market value management, and strategic consulting, etc. It also collaborates with well-known domestic and international information platforms and investment and financing institutions to provide one-stop solutions for enterprises in professional sub-sectors such as pharmaceuticals and medical devices, attracting widespread attention from investors.
