Acquisition Target Search – Healthcare – Pharma

Acquisition Target Search – Healthcare – Pharma

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
We developed specific search criteria based on the client’s strategy and objectives.
‘Must-have’ have criteria included:
  • 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
‘Nice-to-have’ criteria included:
  • 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 identified and screened all companies matching the search criteria (see illustration for details)


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.

To discuss how we can help you organization please  Per Stenvall (email).


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