GlaxoSmithKs 100 Million Dollar Acquisition of Nanjing Meili Watching the Urinary Field

The business club reported on December 3 that the growth of traditional drug markets in Europe and the United States has become increasingly weak, and multinational drug companies are accelerating their market deployment through joint ventures and mergers and acquisitions.

On December 2, it was reported that GSK, the world’s second-largest pharmaceutical company, will launch the acquisition of domestic pharmaceutical company Nanjing Meirui Pharmaceutical Co., Ltd., and the purchase amount may reach as high as US$100 million. The GlaxoSmithKline (China) Company stated that it did not comment on this, and the headquarters of Nanjing Meirui did not deny the transaction.

Founded in 1996, Nanjing Meirui is a pharmaceutical company specializing in the diagnosis and treatment of urinary system diseases. It is jointly established by the United States Far East Hooke Group Corporation, Nanjing Pharmaceutical (600713, Share Bar) Limited Company and Sweden Farmasi Company, of which the United States holds 50% equity and Nanjing Pharmaceutical Corporation holds 40% of the equity. In 2008, Nanjing Pharmaceuticals sold this part of the shares and was taken over by foreign shareholders.

According to Teng Xuewu, Executive Vice President of Nanjing Pharmaceuticals, Nanjing Meirui is a leading company in the subdivision field and its texture is “good”.

Nanjing Murray’s internal staff revealed that employees had heard of the acquisition as early as September this year. “We have very good resources in the urology department. GSK is preparing to set up a urology team. This resource is very important to them.”

The core therapeutic area of ​​Nanjing Meirui is valued by GlaxoSmithKline and is an important reason for this acquisition. If the acquisition can be successfully completed, Nanjing Meirui's existing sales channels and medical resources will help GSK's urological drug "Purgetsutong" to quickly increase sales in the Chinese market.

This is already the third joint venture (acquisition) deal that GlaxoSmithKline has reached in the Chinese market since 2008.

At the end of 2008, GSK announced the establishment of a joint venture with Shenzhen Haiwang to develop, produce, and sell human influenza vaccine and rabies vaccines. This is not only GSK's first vaccine production base in China, but also the first time that GSK has established a vaccine joint venture in the world. In October 2009, GSK once again set up a joint venture with Jiangsu Watson to develop and manufacture pediatric vaccines for the Chinese market. Currently, GSK has approximately $10 billion in cash on its balance sheet.