2014 is a policy year for the medical industry. Driven by a series of rules and regulations regulating supervision and bidding, coupled with the changes of the industry, medical services and medical device M & A are particularly enthusiastic. In combination with their own understanding of policies and markets and their own industry experience, many senior insiders have also made an in-depth analysis of the recent upsurge of investment and M & A, and given their own suggestions on how medical enterprises can comply with the tide of policies, markets and industries, integrate and improve and enhance their competitiveness.

M & a really depends on the combination of time, place and people

As the senior investment and M & a director of Parkson International Group, Yang Kun has a heartfelt feeling: "what is the harmony of time, place and people?"

He gave an example of Medtronic. Medtronic had not acted in China before, and its sales were less than 5% of the world. It was not until the new CEO Omar ishlak took office and proposed to Wall Street investors to increase their investment in China that everything made a 180 degree turn.

"No one wants the case we left behind. We go directly to the headquarters to find China and say what targets we have to buy." Yang Kun said, "so this is Tianshi, which is very important, especially when the company is undergoing major transformation."

Yang Kun, who has just joined Parkson International Group for less than a year, is responsible for the company's investment and M & a business. He understands that the so-called "timing" is not only a key node such as the company's transformation, but also a "wind vane" for policy changes. The general policy during the 12th Five Year Plan period is to support domestic medical equipment enterprises and accelerate industrial integration. In addition, after the Third Plenary Session of the 18th CPC Central Committee, social capital entered the medical service market and the promulgation of the new version of the regulations on the supervision and administration of medical devices made him feel that "at least it is a positive signal and let everyone see a little hope".

But "timing" alone is not enough. Based on his rich industry experience, Yang Kun raised a simple and clear question about the enterprise strategy: "do you buy sales, technology or platform?" Yang Kun believes that it is necessary to have a global positioning, not to ignore the development of middle-end products, but also to consider the issue of market access. For the consideration of investment and M & a target enterprises, we should not pay attention to a single product, but pay more attention to the R & D capacity, supporting products, channels and market positioning of the product line.

These should be regarded as the factors of "geographical advantage" and "human harmony". Yang Kun believes that whether an M & A is successful or not can not only focus on the previous M & a process, 70% to 80% of the time may have to be spent on the later integration. "You have to make sure what you buy and what kind of integration plan is available below," he said. "Keep the key factors to produce the effect that one plus one is greater than two in the future integration."

Listing or M & A, the development direction of Chinese IVD Enterprises

IVD in yingxitang's mouth, that is, in vitro diagnosis, is the key word of his decades of experience from study, work to entrepreneurship.

As the chairman of Beijing Kemei Biotechnology Co., Ltd., Ying Xitang is more willing to take the company he founded as an example to talk about the development of Chinese medical and pharmaceutical enterprises. Kemei was established in 1999. After receiving the investment from Siemens in 2007, it has made great progress in R & D, intellectual property and enterprise management. Through Kemei's own growth and development, he raised several key questions - "is China's IVD innovation path independent research and development, follow or integration? What is the gap between domestic enterprises and multinational corporations? Who will be China's IVD participants in the future and what are the development opportunities?"

"If you can't see your enterprise in the future, it means that your investment has failed, and being acquired by others is also a way out." this is Ying Xitang's personal experience. "We should first look at opportunities when looking for investment and development."

Ying Xitang is well aware of the current situation of domestic IVD enterprises. They are small in scale, small in number and do not make money. In addition, the highly controlled market environment by the government has prevented the development of many small and new IVD enterprises. In order to develop, Kemei introduced the grass-roots R & D management method based on IBM and Huawei in 2006; In Ying Xitang's view, the future development path 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 China's Ivo in the future. For Ivo enterprises with small scale at present, the choice in front of them is nothing more than listing and M & A.

"The development direction of China's IVD enterprises is to be listed, and only when they are listed can they have their own development space; only when they are merged can they become bigger and stronger." this is Ying Xitang's suggestion to himself and his peers, "The popular practice in Europe and America is that I am a small enterprise, I do not make a brand, and I specialize in OEM production for large enterprises. However, it is rare in China, because it is difficult to control the quality of IVD industry. When it comes to finished products, registration and national regulations, you want to entrust 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 hanergy investment group, who calls himself a "layman", chose to speak with data: "the pharmaceutical industry has a 2 trillion market in China, and medical devices exceeded 200 billion last year. The medical device industry is expected to have a very large growth space in the future."

In her opinion, the entire pharmaceutical and medical device industry is developing very fast. Compared with other industries, considering the growth of profit margin, it is a very worthy industry to invest in.

In Dong Zheng's opinion, the regulations on the supervision and administration of medical devices issued on April 4 will help eliminate some enterprises with weak competitiveness and insufficient market capacity, improve the concentration of the whole industry, and trigger a large number of mergers and acquisitions in the industry. This view was recognized by many people in the industry at the two-day summit, and Dong Zheng believes that people are interested in "mergers and acquisitions" Our understanding is not comprehensive.

She cited the "frame media" that hanergy invested in mergers and acquisitions about 10 years ago As a case, the core of my M & a concept is to send partners to the fund as the chairman to lead the industry forward; second, do things quickly, because someone in the industry must be doing the same thing; third, the execution speed and the overall capital efficiency operation must be very high. The popular saying is that the capital should keep up. This is not investing in medicine The experience of medical device enterprises, but now it seems that it is all right in the industry.

As investors, Dong Zheng and her hanergy group also take the same criteria when identifying pharmaceutical and medical device enterprises - one is the core competitiveness, the other is the root of growth. "(enterprises) should have their own core things, grasp the core things, and then make acquisitions to generate added value," she said, "Every company is acquiring. Can we absorb what we receive, can we turn it into our own, turn it into our own core, become an important reason for the capital market, or do we need to acquire because of strategic development... These are what we as investors need to see clearly."

Similar to Yang Kun's view of "favorable time, place and people", Dong Zheng believes that M & A is not only the integration of assets and business, but also the integration of people. After the integration of assets and business is in place, whether we can know people and do good jobs and select a leader with strong execution is also related to the market competitiveness after M & A.