Healthcare sector is one of the most active industries in terms of inbound M&A by foreign investors. With sales slowing in the West, the global drugs giants want a share of the booming profits in China. In particular, the biotechnology industry is part of the driving force behind this activity.
China remains a compelling story for global firms in the hunt for investment opportunities. As China’s global economy has moved to center stage, these opportunities have expanded into new sectors and new technologies. Among them pharmaceuticals and biotechnologies are driving the shift. They lead the increasing number of foreign interest and investors, and keep on developing new ranges of perspectives on the China inbound M&A market.
The Chinese government is specifically encouraging private investment in the medical industry. Taken together, these elements provide ample opportunities for cross-border integration of the pharmaceutical and health care industry. China is willing to keep on increasing domestic and foreign investments in healthcare services as part of restructuring the service sector.
Moreover, the value of mergers and acquisitions in China’s healthcare industry grew by 35% year over year to USD 7.4 billion in the first 8 months of 2013, according to Dealogic figures. The number of mergers and acquisitions rose by 8% during the same period to reach 178. In particular, USD 1.1 billion worth of deals involved American firms targeting Chinese healthcare firms.
Source: http://www.bbc.co.uk Publication Date: 2013-09-06