On October 7th, Jiahe Biotechnology announced a merger agreement with Yiteng Pharmaceutical. Jiahe Biotechnology will acquire Yiteng Pharmaceutical through the merger, and the new company name is expected to be changed to Yiteng Jiahe.

 

 

 

According to industry insiders, the merger between Yiteng Pharmaceutical and Jiahe Biotechnology will enable resource sharing and complementary advantages, further enhancing the company's market competitiveness and profitability, accelerating the transition from biotechnology to biopharma, and is considered a landmark merger event in the biopharmaceutical field.

 

 

 

Jiahe Biotechnology stated in this announcement that the commercialization of GB491 is imminent, and the company's development has reached an important stage, requiring strong commercial capabilities to seize all possible market opportunities. After evaluating multiple potential target companies, the board of directors of Jiahe Biotechnology believes that Yiteng Pharmaceutical meets the above standards and that the merger with Yiteng Pharmaceutical is in the overall interests of Jiahe Biotechnology and its shareholders. For Yiteng Pharmaceutical, this merger may also be an opportunity for a "backdoor listing". It is reported that as early as April 2021, Yiteng Pharmaceutical submitted its prospectus to the Hong Kong Stock Exchange and has submitted four prospectuses, but has never been able to achieve listing. This merger with Jiahe Biotechnology also means that its listing path has ushered in a new turning point.

 

 

 

Analysts say that for the biopharmaceutical industry, mergers and acquisitions can serve as a quick way to achieve resource integration and market expansion. It is reported that in addition to the merger and reorganization of Jiahe Biotechnology and Yiteng Pharmaceutical, at the end of September, Kangsheng Global, an independent clinical special testing enterprise in China, also announced the completion of the acquisition of approximately 100% equity of Benchmark Medical, another tumor early screening and diagnosis enterprise, for a total consideration of $31.3 million.

 

 

 

For Kangsheng Global, as an ICL enterprise, this acquisition will help further enrich its business matrix while the scale of its six major special inspection businesses continues to grow. The field of early screening and diagnosis of solid tumors has broad market space. Through this acquisition, Kangsheng Global is expected to quickly enter the major solid tumor detection fields such as lung cancer and gastric cancer, and expand its business map; At the same time, by utilizing its clinical promotion experience and commercial network, it fully empowers Guangzhou Benchmarking and forms a new performance growth point for Kangsheng Global, which is expected to achieve a breakthrough in the field of solid tumor detection. For benchmark healthcare, Kangsheng Global establishes close relationships with customers through multi-faceted, multidisciplinary, multi omics, and multi platform cooperation. Through multi center scientific research project cooperation with large tertiary hospitals, it strengthens the promotion of related star products and new projects, and strategically cooperates with Kangsheng Huanqiu. This will help significantly expand the channel resources of benchmark healthcare, achieve a competitive edge, and accelerate the consolidation of its industry position in the early screening and early diagnosis track.

 

 

 

According to the analysis, there have been a series of acquisition cases in the pharmaceutical industry this year. Chinese medicine company Tianshi Li also announced this year that state-owned enterprise CR Sanjiu has acquired 28% of Tianshi Li's shares held by Tianshi Li Group and its concerted action parties, with a total transfer price of approximately 6.2 billion yuan, becoming its controlling shareholder. It is reported that Tianshili Biotechnology once sought to be listed on the Science and Technology Innovation Board, but had to withdraw in 2021. On the other hand, the company's innovative drug research and development still needs continuous blood transfusion, and ultimately chooses to embrace state-owned assets and form strong alliances.

 

 

 

Looking further ahead, Haier Smart Home's acquisition of Shanghai Laishi for 12.5 billion yuan, Mindray Medical's acquisition of Huitai Medical for 6.65 billion yuan, AstraZeneca's acquisition of Genxi Biotechnology for 1.2 billion US dollars, Genmab's acquisition of Pufang Biotechnology for 1.8 billion US dollars... Industry insiders say that these mergers and acquisitions will inject new hope into the domestic biopharmaceutical industry.

 

 

 

Analysts point out that mergers and acquisitions and going global have become the trend for innovative pharmaceutical companies in China. For entrepreneurs and investors, seizing new opportunities in the new situation is crucial. Another viewpoint also believes that the recent introduction of policies supporting mergers and acquisitions has sent a positive signal to the market and enhanced the confidence of enterprises and investors in the M&A market. In the future, the activity of the M&A trading market dominated by listed companies may further increase.