Investing In 9 Companies Consecutively, Jiuding Capital Logically Chose Its “Medicine”
2010-08-03
As many PE investors were cautious about pharmaceutical industry, Jiuding Capital, with the efforts of its professional team, has rushed to occupy the market within half a year. It’s revealed in the interview of Shanghai Securities News that the company invested 90 million yuan in Guangxi Liuzhou Pharmaceutical Co., Ltd. in June and 60 million yuan in Hunan Fangsheng Pharmaceutical Co. Ltd. in July, totaling 9 medical corporations plus the prior 7 companies including Shanxi Powerdone Pharmaceutics Co., Ltd. , Haikou Qili Pharmaceutics Co., Ltd. and Zhuhai Ebang Pharmaceutics Co., Ltd., which have covered most sectors in pharmaceutical industry.
Latest News: Jiuding Capital invests in two medical companies
Since its reconstruction in 2002, Guangxi Liuzhou Pharmaceutical Co., Ltd. has kept growing at an annual sales rate of over 30%. In 2008, its sales reached 1.42 billion yuan, ranking 46th among Chinese Top 100 Pharmaceutical Companies of 2008. Since 2004, it has been listed No. 1 in sales in Guangxi medical sectors and become the sole largest and fastest-growing leading enterprise outside the provincial capital city in China.
Hunan Fangsheng Pharmaceutical Co. Ltd. works to make medicines used for gynecology and pediatrics, with 7 national patents.
It’s worth noting that Fangsheng and previous 7 companies are all pharmaceutical companies, except for Liuzhou Pharmaceutical, a medical commercial enterprise. Jiuding Capital’s Partner Zhongyi ZHAO said that Liuzhou Pharmaceutical performed well in terms of circulation channels. Modern economy features the principle of centralized production and scattered consumption. How to achieve scattered consumption in centralized production among the huge Chinese markets? It’s better to pay attention to the channel, which is also the reason why we invested in Chengdu Hongqi Chain and Gifore. and market are two potential development prospects for Chinese enterprises. Chinese market is huge, and an enterprise can develop prosperously if its channel is ok.
For medical businesses, Zhao thought that its logistics will certainly be concentrated, which should be supported by national policies and business principles. As a regional leader, Liuzhou Pharmaceutical will enhance its industrial position and market share in next 3 years and probably compete with national counterparts in 5 years.
Nine invested companies are operated to develop synergetically
When talking about the reasons of investing in Liuzhou Pharmaceutical, Zhongyi ZHAO replied as follows:
1.