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The Way of Merger and Acquisition in Medical Device Industry: Integration of Assets, Business and Personnel |
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 clicks: 602  Date: 2018-11-14 |
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Promoted by a series of rules and regulations of standardized supervision and bidding, coupled with the industry's own changes, medical services, medical devices mergers and acquisitions are particularly enthusiastic. Many senior professionals also combined their own understanding of policy and market, and combined with their own industry experience, carried out in-depth analysis of the recent upsurge of investment mergers and acquisitions, and gave their own suggestions on how medical enterprises conform to the tide of policy, market and industry to integrate and improve their competitiveness.
Mergers and acquisitions really depend on the time, place and people.
As Senior Director of Investment and Mergers and Acquisitions of Baisheng International Group, Yang Kun has a sincere feeling: "What is the time, place and people?"
He gave an example of Medunley. Medtronic had been slow to move in China, with sales less than 5% of the world's total. It was not until the new CEO, Omar Ishlak, took office that investors on Wall Street proposed to invest more in China, that there was a 180-degree turnaround.
"No one wants the case we left behind. Go to our headquarters and go straight to China and say what targets we have for acquisition." Yang Kun said, "So this is the day is very important, especially in the major transformation of the company."
Yang Kun, who has just joined Baisheng International Group for less than a year, is responsible for the company's investment and merger and acquisition business. He understands that the so-called "weather" is not only a key point of corporate transformation, but also a "vane" for policy changes. During the Twelfth Five-Year Plan period, the main policy is to support domestic medical equipment enterprises and accelerate the integration of industries. In addition, after the Third Plenary Session of the Eighteenth Central Committee, social capital entered the medical service market, and the new version of the Regulations on the Supervision and Administration of Medical Devices was promulgated, which made him feel that "at least it is a positive signal, so that we can see a little hope".
But it is far from enough to rely solely on "weather and time". Based on his rich industry experience, Yang Kun has put forward a simple and clear question for enterprise strategy: "Do you buy sales, technology or platform?" Yang Kun believes that we should not only have global positioning, but also not ignore the development of mid-end products, but also consider the issue of market access. For the consideration of investment and M&A target enterprises, we should not focus on a single product, but more on the R&D capability of product lines, supporting products, channels and market positioning.
These factors should be considered as "geographical advantage" and "human" factors. Yang Kun believes that the success of a merger and acquisition can not only focus on the process of previous mergers and acquisitions, 70% to 80% of the time may have to be spent on the integration of the latter. "You have to make sure what you're buying, so what's the next integration plan?" He said, "Keeping the key factors in place can produce a greater than two effect in subsequent integration."
Listing or Merger & Acquisition, the Development Direction of IVD Enterprises in China
Ying Xitangkou's IVD, i.e. in vitro diagnosis, is the key word of his decades of experience from learning, working to entrepreneurship.
As the chairman of Beijing Kemei Biotechnology Co., Ltd., Ying Xitang prefers to take the company he founded as an example to talk about the development of Chinese medical and pharmaceutical enterprises. Komei was founded in 1999 and invested by Siemens in 2007. It has made great progress in R&D, intellectual property and enterprise management. Through the growth and growth of Komei, he raised several key questions -- "China's IVD innovation path is independent research and development, follow or integration? How big is the gap between domestic enterprises and transnational corporations? Who are the participants in China's IVD in the future, and what are the opportunities for development?"
"The future can not see your business, indicating that your investment failure, mergers and acquisitions by others is also a way out." This is Ying Xitang's personal experience: "We look for investment and development, first of all, opportunities."
Ying Xitang is well aware of the current situation of domestic IVD enterprises, which are small in scale, small in number and do not make money. In addition, the highly controlled market environment by the government has prevented many small and new IVD enterprises from developing. In order to develop, Komei introduced the basic R&D management methods based on IBM and Huawei in 2006. In Ying Xitang's view, the future development of Chinese IVO enterprises still follows innovation.
That's not all. Ying Xitang believes that multinational enterprises, large domestic pharmaceutical enterprises and large medical device enterprises are the main participants of IVO in China in the future. For IVO enterprises which are generally small in scale, the choice before us is nothing more than listing and mergers and acquisitions.
"China's IVD enterprise development direction - listing, listing has its own development space; mergers and acquisitions, can be bigger and stronger." This is in response to Xitang's advice to himself and his colleagues, "The popular practice in Europe and the United States is that I am a small business, I do not brand, I specialize in large enterprises OEM production. But it is rare in China, because the quality control of IVD industry is very difficult, to the finished products, registration, national laws and regulations, you want to commission an enterprise, and its product quality is difficult to reassure you.
How to do M&A? Integration of assets, business and people
Dong Zheng, the managing director of Hannong Investment Group, who boasts himself as a "layman", chose to use data to say: "There are 2 trillion markets in the pharmaceutical industry in China. Last year, the medical device industry exceeded 200 billion yuan. The medical device industry is expected to have a very large growth space in the future."
In her view, the entire pharmaceutical and medical equipment industry is developing very fast, compared with other industries, considering the growth of profit margins, it is very worthwhile to invest in the industry.
In Dong Zheng's opinion, the Regulations on the Supervision and Administration of Medical Devices promulgated on April 4 will help to eliminate some enterprises with weak competitiveness and inadequate market capacity, and let the whole industry gather.
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