SINO BIOPHARM(HK:01177) 3 6 Ke·2026-01-16 02:56Core Viewpoint - The first domestic pharmaceutical merger of the year occurred when China National Pharmaceutical Group announced the acquisition of Hegia Biotech for 1.2 billion RMB, marking a strategic move to strengthen its position in the small RNA drug sector and expand into the global chronic disease treatment market [1][2]. Group 1: Acquisition Details - The acquisition price for Hegia Biotech is set at 1.2 billion RMB, and upon completion, Hegia will become a wholly-owned subsidiary of China National Pharmaceutical Group, retaining its founding team [2]. - Hegia Biotech has developed a unique liver-targeted delivery platform for siRNA, which is the only clinically validated system capable of long-term administration with a single injection per year [3]. - Hegia has a robust pipeline with four innovative drugs in clinical stages and over 20 candidates in preclinical development, covering various therapeutic areas [2][3]. Group 2: Strategic Implications - The acquisition is seen as a critical step in positioning China National Pharmaceutical Group for the next generation of drug paradigms, aiming for deep synergy with its existing clinical development and commercial expansion capabilities [3]. - The company has previously invested in the small RNA sector, indicating a systematic approach to securing next-generation drug technologies [3]. - The strategic focus on oncology and chronic diseases aligns with the anticipated market opportunities, as the company aims to create substantial value for shareholders through these acquisitions [9]. Group 3: Leadership and Historical Context - The acquisition highlights the leadership of Xie Qirun, a young executive from the fourth generation of the Xie family, who has been pivotal in steering the company towards innovation and strategic acquisitions [5][6]. - Under her leadership, the company has transitioned from having only two innovative products a decade ago to 21, with a significant increase in the revenue share from innovative drugs [9]. - The historical context of the Xie family’s involvement in the pharmaceutical industry dates back over a century, with a focus on biopharmaceuticals since the early 1990s [6][7]. Group 4: Industry Trends - The trend of mergers and acquisitions in the pharmaceutical industry is gaining momentum in China, mirroring global practices where large pharmaceutical companies acquire biotech firms to enhance their innovation capabilities [11][12]. - The Chinese pharmaceutical market is expected to see a surge in innovation-driven deals, with projections indicating a significant increase in the value of drug development and licensing agreements [12]. - The strategic direction of China National Pharmaceutical Group reflects a broader industry shift towards global competitiveness and the need for innovative therapies to meet growing healthcare demands [13].