Acquisition Target Search Case Study
Entering China’s pharmaceutical market through M&A
Our client, a leading North American pharmaceuticals company, wanted to increase sales in China and obtain low cost production capacity to supply other markets.
During a 10-week project, we screened hundreds of targets and finally identified and introduced our client to the companies that best fit their acquisition criteria and strategies objectives.
- North American pharmaceuticals company with sales in 150+ countries
- Already active in China with a general pharmaceutical sales office and an API joint venture
- Client wanted to acquire an advanced Chinese player with an existing product portfolio and sales network in order to:
- Increase sales in China
- Lower global production cost
- Domestic sales presence in high volume prescription and OTC products (excluding TCM)
- Minimum of 10 products marketed
- Marketing/product portfolio focus on therapeutic classes of interest to the Client (‘Top 100 Molecules’ in 24 therapeutic classes)
- A GMP compliant facility with good quality control
- Some R&D capability (experience in developing & registering its own products)
- A modern facility that could be made approvable in other Tier 1 markets with additional investment, i.e. US FDA
- A good pool of skilled workers to draw from in the surrounding area.
- A tax efficient location
We short-listed 34 companies. Based on interviews with management, discussions with industry experts along the value chain, and desk research we identified 15 high priority targets. The client ended up forming a manufacturing joint venture with one of the companies.