JD Capital Investing in Longer for Industry Extension

2013-11-19

Recently, JD Capital announced its investment in Shenzhen Longer Biological Pharmaceutical Co., Ltd.Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Longer, established in June 2000, is a domestically-famous leading pharmaceutical business enterprise. Its sales network has more than 10,000 distributors and 2000 commercial clients, covering more than 15,000 hospitals. Moreover, Longer has just purchased the two pharmaceutical manufacturers to extend towards the upstream pharmaceutical manufacturing sector.Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

“Longer’s screening ability and marketing ability of the pharmaceutical varieties are well-recognized in the industry. As a rule, investment is input, especially in the pharmaceutical industry. We think highly of Zou Xiang and his team.” partner of JD Capital Wu Qing told the reporter. The pharmaceutical industry is a highly-regulated sector. In R&D and marketing, entrepreneurs must have extremely-strong strategic insight, resource integration ability and executive ability. Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Pharmaceutical industry investment director of JD Capital Li Guoxing said, “The competitive superiorities of Longer, as a pharmaceutical business enterprise, lie in its wide and in-depth sales network as well as in its ability to select pharmaceutical varieties, dig product value fully, assist the pharmaceutical manufacturers in clinic application and promotion and bidding, which can help Longer build relatively-high competitive barrier.” Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Li Guoxing introduced that Longer has launched multiple varieties into the market since its inception, and its team’s marketing ability is well-received by the market. The reporter learnt that, in the cerebrovascular disease drug piracetam market, Shandong Wego and Jiangsu Chenpai have occupied above 95% market shares, with Longer being its general agent. Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

A non-negligible problem is that, Longer, as a pure commercial company, is facing the sustainable development problem. The dealership of the agent varieties is likely to be retrieved. “To tamp the foundation of future development, Longer needs its own production base.” Li Guoxing said.Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

 Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Through detailed due diligence and diagnosis of Longer, JD Capital put forward the development strategy of purchasing the pharmaceutical manufacturers to extend towards the upstream pharmaceutical manufacturing sector. “In this point, his idea coincides with mine. We have cooperated with a pharmaceutical R&D company in Shanghai to develop 4 varieties in need of pilot scale test in the qualified production workshop, and are intended to extend towards the upstream sector.” chairman of Longer Zou Xiang told the reporter.Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

It is learnt that Longer has purchased Xuzhou Laien Pharmaceutical Co., Ltd. and Yantai Zhongzhou Pharmaceutical Co., Ltd. recently. Since then, Longer has owned the manufacturing base of injection preparations and oral preparations, as well as relatively-potential pharmaceutical varieties, such as Zhongzhou Pharmaceutical’s exclusive product - Jin Lian Hua Feng San Pian, a single-component oral traditional Chinese medicine antibiotic. Under the circumstance of restricting the antibiotics like traditional chemical drug antibiotic injections, the oral traditional Chinese medicine antibiotic will have a promising market prospect. Moreover, Xue Ning Jiao Nang against the visceral hemorrhage is also an exclusive product, with the promising market prospect. Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

 “The acquisition of the two enterprises will lay a solid foundation for Longer to transform a pure agent into a comprehensive pharmaceutical industrial group.” It is learnt that JD Capital’s investment in Longer will be used to support Longer’s acquisition. Moreover, JD Capital also will help Longer perform investigation and evaluation on several small-sized pharmaceutical manufacturers. If there is a proper target, Longer will continue to acquire in the future.Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Wu Qinggong from JD Capital thought that the high entry barrier of the pharmaceutical industry and the promotion of national new edition GMP policy determine the increasing enhancement of the concentration degree of China pharmaceutical industry. The merger integration in China pharmaceutical industry is an irresistible trend. In the tide of the industrial integration, the leading roles are some excellent pharmaceutical manufacturers led by the outstanding entrepreneurs in the industry. Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司


Rs5九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

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