China’s USD5 bn healthcare deal spree
29-Sep-16, Bloomberg
Chinese companies have announced more than $5.2 billion of overseas health-care acquisitions this year, according to data compiled by Bloomberg, a fifteen-fold jump from 2012.
Among the most prominent deals, Humanwell Healthcare Group bought US-based generic drug maker Epic Pharma LLC for $550 million. Shanghai Fosun Pharmaceutical, backed by Chinese billionaire Guo Guangchang, agreed to buy Indian drugmaker Gland Pharma Ltd for about $1.3 billion.
%20China%20Grand%20Pharmaceutical%20and%20Healthcare%20Holdings%20Ltd.jpg "Chinas USD5 bn healthcare deal spree (c) China Grand Pharmaceutical and Healthcare Holdings Ltd")
Image: China Grand Pharmaceutical and Healthcare Holdings Ltd
"Even though China’s pharmaceutical industry is still in the middle of consolidation and price wars, we hope to escape from this and do more work in terms of innovation and internationalization," said Shao, 53, who’s been CEO since 2008, and overseen a twelve-fold increase in the company’s revenue to more than $400 million last year.
Such a two-pronged strategy is typical among front-runners in China’s health industry today. Drugmakers are seeking an edge in the domestic market, where price competition is cut-throat. At the same time, they’re trying to upgrade from selling raw chemicals to exporting finished pills around the world.