Case Study: Acquisition Target Search, Pharmaceuticals
Our client wanted to identify the right Chinese acquisition target to expand China sales and production capacity.
- 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 (i) increase sales in China, and (ii) lower global production costs.
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.
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.
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