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China Fund News reporter Lu Yu

A company that is quite low-key in the pharmaceutical industry and continues to expand through mergers and acquisitionsChina Evergrande Group's subsidiaries, has recently made frequent moves to buy related pharmaceutical assets.

On the evening of July 17, Hong Kong-listed companiesYuanda PharmaceuticalAccording to the announcement, the company recently completed the acquisition of Tianjin Tanabe Pharmaceutical Co., Ltd. (hereinafter referred to as Tianjin Tanabe) andNanchang BeiGene Pharmaceutical Co., Ltd. and Jiangxi Baian Baiyu Pharmaceutical Technology Co., Ltd.(hereinafter referred to as BeiGene) has registered the change of 100% equity interest, which will further deepen its industrial layout in the cardiovascular and cerebrovascular emergency and respiratory and critical care sectors.

Prior to this, on the evening of July 14, China Yuanda Group, which is also affiliated with Yuanda Pharmaceutical,Huadong MedicineThe company announced that its wholly-owned subsidiary Zhongmei Huadong has signed an exclusive product license agreement with Ausone Biotech. Zhongmei Huadong has obtained the exclusive license for all indications of Ausone Biotech's TTYP01 tablets (edaravone tablets) in mainland China, Hong Kong, Macau and Taiwan by paying a huge amount of relevant fees.

Completed the acquisition of 100% equity of Tianjin Tianbian

Yuanda Pharmaceutical announced on the evening of July 17 that the company recently reached an acquisition agreement (the second acquisition agreement) with the minority shareholders of Tianjin Tianbian. Together with the first acquisition agreement, the subsidiaryYuanda Pharmaceutical (China) Co., Ltd.It has acquired 100% of the equity of Tianjin Tianbian at a total cost of approximately RMB 488 million, and recently completed the registration of equity change.

The "minority shareholder of Tianjin Tanabe" referred to by Yuanda Pharmaceutical is Lisheng Pharmaceutical, an A-share listed company under the Tianjin State-owned Assets Supervision and Administration Commission. Yuanda Pharmaceutical acquired its 24.65% stake in Tanabe Pharmaceutical for 120 million yuan. Prior to this, in December 2023, Yuanda Pharmaceutical acquired 75.35% of the shares of Tianjin Tanabe held by Japan's Tanabe Mitsubishi Pharma Co., Ltd. (hereinafter referred to as Tanabe Mitsubishi) for approximately 368 million yuan.

Tianjin Tanabe is one of Tanabe Mitsubishi's core enterprises in China, mainly engaged in the production and sales of high-quality original drugs in the fields of cardiovascular and cerebrovascular, endocrine metabolism, gastrointestinal and other chronic diseases.

Yuanda Pharmaceutical said that the company's acquisition of the remaining equity of Tianjin Tianbian is a further in-depth layout of Yuanda Pharmaceutical in the cardiovascular and cerebrovascular emergency sector. After fully taking over Tianjin Tianbian's business, the company will fully integrate and upgrade its resources to make it a new performance growth point for Yuanda Pharmaceutical's cardiovascular and cerebrovascular emergency sector.

Through Tianjin Tianbian, Yuanda Pharmaceutical can also quickly enter the chronic disease market, thereby achieving full coverage in the treatment of cardiovascular and cerebrovascular diseases from emergency rescue to chronic disease management, from injectable preparations to oral preparations, and expanding and improving the product portfolio of Yuanda Pharmaceutical's cardiovascular and cerebrovascular emergency segment.

Acquired 100% equity of nasal spray preparation company

Yuanda Pharmaceutical also disclosed in its announcement on the evening of July 17 that its subsidiaryBeijing Yuanda Jiuhe Pharmaceutical Co., Ltd.Recently, it acquired 100% of BeiGene's equity for approximately RMB 260 million and acquired its technologically advanced nasal spray formulation platform.

This acquisition is a major layout of Yuanda Pharmaceutical's respiratory and critical care sector. BeiGene's products will form a product portfolio with its Ryaltris® compound nasal spray to fully meet the medication needs of patients with mild, moderate and severe allergic rhinitis.

After the acquisition is completed, Yuanda Pharmaceutical will become one of the companies in China with the most complete product pipelines for the treatment of allergic rhinitis, and will have a domestically technologically advanced nasal spray formulation platform.

Earlier on the evening of July 14, Huadong Medicine, which belongs to China Grand Group together with Grand Pharmaceutical, issued an announcement stating that its wholly-owned subsidiary Sino-US Huadong had signed an exclusive product licensing agreement with Auszone Biopharmaceuticals.

Zhongmei Huadong has obtained the exclusive license for all indications of TTYP01 tablets (edaravone tablets) of Ausone Biopharmaceuticals in mainland China, Hong Kong, Macau and Taiwan, including development, registration, production and commercialization rights. Zhongmei Huadong will pay Ausone Biopharmaceuticals a down payment of 100 million yuan, a maximum of 1.185 billion yuan in development, registration and sales milestone payments, and tiered net sales commissions of up to double digits.

According to information, edaravone is a well-known product in the field of brain protection. Coincidentally, its original drug was developed and produced by Mitsubishi Tanabe. It was approved for the treatment of stroke in Japan in 2001 and approved for marketing in China in 2004.

Low-key "Yuanda system"

The controlling shareholders of Yuanda Pharmaceutical and Huadong Medicine are both China Yuanda Group, and the actual controller is Hu Kaijun.

The official website of China Grand Pharmaceutical Group shows that the pharmaceutical and health business is its core business segment, which is composed of East China Pharmaceutical, Grand Pharmaceutical, Lei Yunshang Group, and Grand Life Sciences Group. It has formed a pharmaceutical and health business model that integrates R&D, production, and sales, and develops traditional Chinese medicine, chemical medicine, biological medicine, medical devices, and medical aesthetics simultaneously, with the domestic and international markets developing together.

Among them, Huadong Medicine and Yuanda Pharmaceutical are listed on the A-share and H-share markets respectively, and together with another A-share listed company Yuanda Holdings, they constitute the "Yuanda system" in the capital market. Lei Yunshang was founded in 1734 and is one of the first batch of Chinese time-honored brands. It is one of the four major pharmacies, a top-secret national project and the owner of national intangible cultural heritage.

In the domestic pharmaceutical and health sector, the "Yuanda Group" is quite low-key, and its actual controller Hu Kaijun rarely appears in the media. However, through mergers and acquisitions and capital operations, China Yuanda Group has continuously expanded its pharmaceutical territory, involving various fields such as raw materials, intermediates, preparations, blood products, nuclear medicines, and medical devices.

Among them, the predecessor of Yuanda Pharmaceutical was Wuhan Pharmaceutical Factory, which mainly produced chemical raw materials. In 2003, China Yuanda Group acquired Wuhan Pharmaceutical Factory, and then completed a backdoor listing and changed its name to "Yuanda Pharmaceutical". At present, the company has become the leading nuclear medicine company in China.

As early as 1998, China Yuanda Group became the controlling shareholder of Huadong Medicine through relevant agreement transfer.

Editor: Xiaomo

Review: Xu Wen

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