Shanghai Medical Intends To Visit H-Share &Nbsp; A Shares Will Stop Trading Now.

Shanghai Pharmaceutical (601607.SH), which is preparing to visit H-share, announced today that in order to ensure that the shareholders of A share the right to obtain the relevant information about H-share issue and safeguard the interests of investors, the company's stock has been temporarily suspended since May 3, 2011, until the H-share Hongkong stock starts to resume trading.

Landing H-share

The idea of Shanghai medicine listing on H shares has been a long way in the hope of gaining more initiative in the restructuring of the pharmaceutical industry.

The outline of the national drug circulation industry development plan (2011~2015), which was led by the Ministry of Commerce and market order, is ready to come out. According to people familiar with the matter, the plan will be targeted at cultivating 1-3 years.

Obviously, M & A in the next 2-3 years is of great significance to occupy the dominant position in the industry pattern.

In this storm of merger and acquisition, the three giants of the pharmaceutical industry, the new drug group and the Huarun group are all ready to fight.

The first group of Chinese drug companies laid the first hand, and 1099.HK listed on H shares in September 23, 2009, raising HK $8 billion 730 million.

In May 2010, the State Pharmaceutical holding company established the national drug holding Guizhou limited, a sales network covering the whole country was basically formed, and the position of the National Pharmaceutical Group was consolidated.

The drug group is not far behind, and with the great efforts of the Shanghai SASAC, Shanghai pharmaceutical first completed the "three in one" listing as a whole, and went all the way to the H-share market.

According to relevant sources, the Shanghai medicine is expected to issue no more than 764 million H-shares, and the amount of financing will not be lower than that of 1099.HK. Half of them will be used for mergers and acquisitions.

Other commentators believe that the Chinese drug holding company was given 40 times PE when it was listed on H shares, which made Shanghai medicine more enthusiastic about H-share listing.

Lv Mingfang, chairman of Shanghai medicine, said that after completing the national layout of the distribution field, the future will pay more attention to the merger and acquisition of industrial projects, and attach importance to the combination and layout of product lines.

At present, the matter is proceeding smoothly. The China Securities Regulatory Commission approved in April that Shanghai Medicine issued no more than 763846613 shares of overseas listed foreign shares (including 99632167 excess allotment), with a face value of 1 yuan per share, all of which were ordinary shares.

In April 14th, the Hongkong Stock Exchange Listing Committee held a listing hearing to consider the application of the company's issue and listing, but the application still needs the final approval of the Hongkong stock exchange.

Cooperative mergers and acquisitions blossom

On the other hand, Shanghai medicine also completed the follow-up of the merger of CITIC drugs industry and the introduction of two partners in April.

In April 2nd, the company completed the 100% stake in the acquisition of CITIC pharmaceutical industry, tentacles extended to the Beijing market.

The memorandum of understanding signed with Pfizer Inc (Pfizer) agreed that the two sides will cooperate in the registration, commercialization and distribution of an innovative medicine produced by Pfizer Inc in the Chinese market.

In the future, we will continue to strengthen cooperation in the Chinese market to promote the "Pei Er" (7 valent pneumococcal conjugate vaccine) produced by Pfizer Inc to prevent pneumococcal diseases in children, including equity investment and the commercialization, distribution, R & D and manufacturing of other medicines.

In the way of establishing the national distribution network, Shanghai medicine has made the first move. In April 20th, it joined hands with China Post Group Logistics Company Limited (hereinafter referred to as China Post Logistics). The two sides signed a comprehensive strategic cooperation framework agreement. They will make full use of their superior resources to carry out comprehensive cooperation in the fields of essential medicine distribution, distribution of special drugs (narcotic drugs, psychotropic drugs, etc.), high-value direct drug delivery (DTP), modern medicine logistics center construction, and logistics supply chain financial support, and create a new logistics distribution network covering the whole country.

And the national drug group is still building a self logistics center route. The large amount of investment in these fixed assets makes the national drug company feel tight.

On the evening of April 25th, the State Pharmaceutical holding company announced the large share allotment plan, which was planned to raise 3 billion 400 million yuan by allotment.

Wu Aimin, vice president of Sinopharm, told the media that fundraising was mainly used to expand the distribution network of medicine and retail, as well as the liquidity of the supplementary group.