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Precision medical the next two years, there will be two mergers and acquisitions model

Date:2016-12-06

From January 30, 2015, Obama proposed the United States accurate medical plan so far, the precision of the major medical track is almost full start-up companies. Of course, listed companies will not miss the exact medical bonus, in addition to shares of start-up companies, mergers and acquisitions are listed companies to get involved in precision medical is another major way.

"The field of medicine and precision medical integration, the listed companies, in view of precision medical technology is still embryonic stage, M & A more convenient, first inserted in the foot, but in the end can come out, it is still more difficult to judge. Rich fund "medicine a brother," Zhou Rui at the recent Bio4P, 2016 precision medical innovation forum to accept the first financial reporter said.

"The next two to three years, precision medical field will have a lot of mergers and acquisitions," Zhou Rui said. Today, the gene Tao slightly to sort out the precision medical field appear M & A cases and characteristics.

Small companies R & D + mergers and acquisitions of large companies into the mainstream model

In 2016, precision medical field mergers and acquisitions than Berry and Kang backdoor Tianxing instrument landing A shares, is currently awaiting review. August 29 evening, suspended for two and a half months of Tianxing Instrument disclosed significant progress in asset restructuring announcement, intends to present all of its assets, liabilities, business, personnel and other stock business assets sold to Chengdu Tianxing Instrument (Group) Co., Ltd. Or its designated third parties. At the same time, to Berry and Kang all the shareholders to issue shares to buy their 100% stake in Berry and Kang.

Berry and the establishment of six years, from the beginning of the creation of noninvasive prenatal genetic testing on the market of Dongfeng, in 2011, the A-jun capital A round of financing 17.8 million US dollars, in mid-2013, and 25 million US dollar B round of financing, venture capital from Qiming lead. Subsequently, Berry grabbed the 2014 to 2015 non-invasive prenatal genetic testing of commercial opportunities, as non-invasive prenatal genetic testing field after another major gene Huada. 2016, Berry exposed the new progress is the backdoor landing A shares.

The next period of time, from a global perspective, "small companies R & D + mergers and acquisitions of large companies" or will become the mainstream of precision medical business model.

May 31, 2016, the Wall Street Journal reported that Irish biopharmaceutical company Jazz Pharmaceutical (JAZZ) will be 1.5 billion acquisition of Celator Pharmaceutical (CPXX), the purchase price is about twice the market value of Celator pharmaceuticals.

Celator Pharmaceuticals is a well-deserved star in US stocks in 2016, the company announced on March 14 after the suspension, said the company's new drug VYXEOS clinical phase III confirmed acute myeloid leukemia (AML) high-risk patients (two) overall survival significantly increased . The company resumed trading the next day, stock prices soared 400% a day, then continue to rise. As of May 31 closing price of $ 17.53. 3 months has been close to 10 times, led the Nasdaq market.

Medical mergers and acquisitions have gradually become the main way of global capital out. To health care business development in the field of Israel, for example, start-up companies grow to a certain extent, the choice of M & A exit case a lot. Share investment investment to vote on the investment manager Wu Han to the First Financial reporter, from 2005 to 2014, a total of 62 Israeli medical and health industry companies were mergers and acquisitions, medical and health industry company acquired the average operating time of 12.3 years, From the first financing to the merger take the average time-consuming 8.68 years. However, this is mainly because bio-medicine and biotechnology and other segments of the elongated capital payback period, the general medical business investment cycle is relatively short.

In China's capital market, listed companies have been merged into the precise medical cases, mergers and acquisitions for listed companies to increase the story-telling space. October 2015, the new day constant force announcement, to 15.66 billion acquisition of Burson-Marsteller stem cells 80% of the shares, Burson-Marsteller stem cells to become the new day holding subsidiary of Hengli, November 23, 2015, shareholders of the General Assembly adopted the resolution, the new Day constant force to enter the biomedical field.

May 11, 2015, the new open-source announcement that the company intends to target through the non-public offering of shares to acquire three economic biological, and medical and crystal bio-100% stake, and 13.20 yuan / share to the three specific target By 13.71 million shares to raise funds 1.546 billion yuan for the underlying asset integration, working capital arrangements. New open source also through the acquisition of cancer early diagnosis, molecular diagnosis, gene sequencing and other in vitro diagnostic services.

At the same time, listed companies will choose to set up a M & A Fund to cut into the precision of medical, select the subject of investment in the global context. In February 2016, Lepu Medical announced that it planned to invest US $ 95 million in self-financing with Yantai Minhe Deyuan Equity Investment Management Center (limited partnership) to set up a global precision medical innovation investment fund of no more than US $ 100 million. Currently the fund has invested in the field of liquid biopsy US Quanterix company, invested 11 million US dollars to increase their participation in the D round of financing, to obtain its 5.35% stake.

Start-up companies may also have mergers and acquisitions

Has been concerned about the precise level of medical investment in the market of Song Wo capital investment director Wang Yang told the First Financial reporter said that in 2017 ~ 2018, precision medical industry there is the possibility of industry reshuffle. Mergers and acquisitions will not only occur in the listed companies, will also occur between these start-ups. This and Zhou Rui's predictions coincide.

Wang Yang believes that the current number of domestic genetic testing companies more than 600 companies. Most companies in the past two years the capital boom to get the angel or A round of financing, but then the subsequent investment and financing process was tight, because the one hand, performance growth and profits lower than expected, the ideal is greater than the actual; the other hand, the company valuation generally High, then disk weak, financing can not form an effective convergence. Therefore, the future of some companies may continue to grow through financing for large companies, and some may be completed by way of mergers and acquisitions reorganization.

After the outbreak of non-invasive prenatal genetic testing, the development of domestic precision medical focus more on the field of cancer. But the domestic (tumor field) several leading (gene sequencing), a few years the cumulative detection of patients reluctantly million cases, the national annual increase of 4.3 million cancer patients, all companies add up to the sum of the market share low. The industry is still in the education market stage, and policymakers, investors, practitioners, doctors and patients all need education.

The previous stage of the capital market and the industry itself to promote the speed does not match, there will be some squeeze "bubble" process. And some companies with good prospects are also on a global scale "buy buy" to quickly enhance their own strength.

By the original CEO Wang Jun, the rate of carbon cloud intelligent team, founded in April 2016 A round of financing amount of nearly 1 billion yuan, led by Tencent lead, followed by carbon cloud intelligence also began to use the acquisition of precision medical field "conquering ". On September 15, 2016, Carbon Cloud announced the establishment of an Israeli R & D center and acquired Imagu Vision Technologies, a privately owned Israeli image-understanding and artificial intelligence company.

Another company worthy of attention in the industry from the US stock market to complete the delisting of WuXi PharmaTech, in recent years has been through mergers and acquisitions, investment has gradually formed a genetic testing, cell immunotherapy, drug CRO and other industrial chain layout, the industry believes that drugs Out of the future layout or will have a greater value.

In short, whether a wholly-owned subsidiary or equity participation, mergers and acquisitions, will be listed companies in the field of precision medical development of the main way, and these new areas for the listed companies to contribute much revenue, harvest may also depend on further reduce the cost of sequencing , Technical sensitivity to further develop after the judge.

TypeInfo: Industry News

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