A medical device merger and acquisition case reappears in China

Medical devices, as a popular industry, have been subject to mergers and acquisitions from time to time. Recently, medical device giant Medtronic announced that it will invest heavily in acquiring Koch Healthcare. Subsequently, there was also a news of mergers and acquisitions in China, where Peking University Pharmaceutical plans to acquire 100% equity of Shenzhen Yiyi Medical Technology Co., Ltd. Through this action, it will create a complete industry chain for anti-tumor drug treatment. Peking University Medical will also use this as a foundation to gradually enter the medical service field.

Shenzhen Yiyi Medical Technology Co., Ltd. is a medical device enterprise with strong research and development capabilities. The company's products in radiation imaging diagnostic equipment have a good reputation in the industry and are in a leading position in the fields of oncology and health rehabilitation in China. Peking University Pharmaceutical also sees its advantages in the field of oncology and plans to acquire the company in order to build a complete industry chain for anti-tumor drug treatment. The equity of Yiyi Medical is held by Yiyi Group, Yiyi Zhengrun, and Jinyixin, with a total of 106 million shares. The proposed acquisition price is 13.29 yuan per share, so the valuation of all shares of Yiyi Medical is about 1.402 billion yuan. Compared with its net assets of 326 million yuan, this valuation has increased by more than 330%. Peking University Pharmaceutical stated that the reason for the high premium is that Yiyi Medical is a high-tech enterprise with stable performance and promising future prospects.

The core business of integrated healthcare is the research and development, manufacturing, and sales of medical equipment, as well as providing overall equipment solutions for medical institutions. The company is committed to providing customers with comprehensive solutions for tumor diagnosis and treatment equipment. Currently, its products include gamma knife, ultrasound liver cirrhosis detector, whole-body hyperthermia system, whole-body red light therapy system, etc., all of which are self-developed by the company. In addition, the company also provides other services for medical institutions, such as value-added services for medical equipment. The acquisition of integrated medical services can be seen as a symbol of Peking University Pharmaceutical's development in the medical service field. By establishing preliminary cooperation with medical institutions through value-added services and overall solutions for tumor equipment, and further developing in depth, this business can be further developed.

The medical service industry is an important part of the future medical field, and Peking University Pharmaceutical's move will bring more development opportunities for it.

Source: Global Medical Device Network