Novartis tianyuan or more foreign investment in mergers and acquisitions

as foreign vaccine industry's first big mergers and acquisitions in China, the world's fifth largest pharmaceutical companies in Switzerland novartis acquired finally fell to the zhejiang tian yuan biological trial. On March 16, the reporter learns from the relevant person in charge of zhejiang tian yuan biological, the acquisition has officially won the ministry of commerce for approval.

in response, the industry believes that the purchase of such novartis tianyuan approved, its strategic significance is greater than practical significance, the ministry of commerce "nod" behind, or to foreign investment enterprises vaccine release positive policy signals. But once the policy open, or will cause more foreign giants involved in mergers and acquisitions of domestic vaccine industry.

foreign acquisitions in the first case

originated in Switzerland Rhine of novartis, finally in the fifth year in China, "eating" the Chinese "big fat" vaccine market.

on March 16, the reporter learns from the relevant person in charge of zhejiang tian yuan biological, novartis tianyuan biological m&a has officially won the ministry of commerce for approval, the company will soon issue a formal announcement. Novartis relevant personnel says, had the certain will be completed this year, and for zhejiang tianyuan changed its name, specific schedule and details, etc., it is inconvenient to comment.

in early November 2009, novartis has officially announced that it would '$125 million acquisition of zhejiang tian yuan biological pharmaceutical co., LTD. 85% stake, novartis group CEO Daniel vasella said, will with tian yuan as a platform, to bring to China technology and production lines, enhance novartis vaccines in China in the field of business. In fact, behind the words of Daniel vasella, hidden is a bit mysterious "background".

in the autumn of 2009, the seasonal outbreak of swine flu, global vaccine supply gap expanded rapidly, and according to the ministry of health of the key regional focus group method to measure, only about 390 million people in China waiting for the a/h1n1 flu vaccine injections.

"novartis choice in this sensitive time announced the acquisition of zhejiang tianyuan, it is possible that hopes that by the swine flu outbreak in the special period for examination and approval to go through." Cic advisory pharmaceutical industry researcher Guo Fan ceremony said, "because our country to foreign vaccine into the conditional release, after entering the Chinese market since 2006, novartis in China can only provide flu and rabies vaccine, business co., LTD. And once acquired zhejiang tianyuan, novartis can rapidly expand its more vaccine market in our country, expand sales channels, gain more market initiative and business interests."

meanwhile, nearly sixties years of zhejiang tianyuan chairman Ding Xiaohang is intended to sell the seasoning for 15 years in the field of vaccine. "When Ding Xiaohang feel no way out, domestic competition environment is not very good, began to consider what to do next." One industry, according to people familiar with the "country of vaccine basic cannot enjoy the supporting policies of private enterprises, private vaccine enterprise cannot vaccine with state enterprises to carry out fair competition."

the Ding Xiaohang was also found in the group, hope group can come to restructuring, but nothing happened. Novartis, however, the "surprise" to the "olive branch" to its.

"as the vaccine is involved in the national health and even national security sensitive products, the government of the acquisition decision carefully, late shipment from unavoidable." Guo Fan li said, "especially when the a/h1n1 flu outbreak, countries want to come out to support foreign pharmaceutical enterprises, but not a stand out and expressed support for foreign investment, after seeing this situation, the government for examination and approval of nature more carefully."

in addition, zhejiang tianyuan is China's second largest supplier a/h1n1 flu vaccine, and novartis is the world's second largest influenza vaccine manufacturers, the acquisition will inevitably involves an antitrust investigation; And because the vaccine is related to the national health and national security of sensitive products, access to countries in this respect strict careful considerations is inevitable.

and the acquisition of zhejiang tianyuan, also let foreign involvement in China's vaccine industry, an important step.

the lure of the Chinese vaccine market

at present, China has become the world's largest producer and largest use the vaccine products.

the vaccine industry in China in 2010-2015 investment analysis and in-depth research and consulting report, related data show that there are 43 vaccine production enterprises in our country, the machine can produce 26 kinds of infectious diseases prevention and 41 kinds of vaccines, the annual output of more than 1 billion doses of the unit. 10 billion vaccine market in China in 2010-12 billion yuan, annual growth rate of about 15%.