Haier Group Corp.

As the anticipated U.S. Biosecurity Act faces delays, much like the elusive Godot, industry participants are compelled to reevaluate the true role and value of CXOs in the biopharmaceutical landscape. This period of reflection not only tests patience but also encourages deeper contemplation among stakeholders. Unexpectedly, WuXi AppTec has begun to frequently divest assets, raising eyebrows. In December, the company announced the sale of two cell and gene therapy firms in the U.S. and the U.K. Shortly after, it sold a portion of its shares in WuXi Biologics, reaping over ¥2 billion. On January 18, WuXi AppTec revealed plans to sell its U.S. medical device testing platform to NAMSA. Financial Health and Strategic Decisions According to WuXi AppTec’s 2024 Q3 financial report, the company holds a staggering ¥14.052 billion in cash and has consistently generated stable positive operating cash flow for several years. Given this financial strength, many investors are left questioning the rationale behind these asset sales. To comprehend WuXi AppTec's strategy, investors must adopt a holistic view that considers macroeconomic conditions, industry trends, and the company's operational model. As a bellwether for China's biopharmaceutical sector, WuXi AppTec's strategic moves often indicate the industry's evolutionary path. Macroeconomic Landscape: A Year of Challenges The year 2025 is poised to be a difficult one, as various economic cycles suggest a continued downturn. Whether examining the Kondratiev, Kuznets, Juglar, or Kitchin cycles, all point to potential hardships. As the global economy adjusts to a new environment, characterized by historically low interest rates in China, industries are increasingly focusing on their core operations. At a recent Tencent Group annual meeting, CEO Ma Huateng emphasized the importance of “focusing on core business and increasing efficiency.” Similarly, Alibaba has divested from non-core retail assets, further illustrating this industry-wide trend. Traditional giants, such as Midea, Haier, and Vanke, are also prioritizing their main businesses in response to declining market opportunities. This shift towards core competencies reflects a broader consensus among leading firms on how to navigate a sluggish economy. Industry Trends: Global Adaptations While WuXi AppTec tightens its focus on its proven business model, it is simultaneously nurturing new growth opportunities. At the JPMorgan Healthcare Conference on January 15, the company revealed plans to accelerate global capacity expansion, with 2025 D&M capital expenditures expected to double. Currently, six operational bases are under construction worldwide. Global pharmaceutical companies are also refocusing their efforts in light of the current economic climate. Following reduced performance expectations from leaders like IQVIA and Medpace, many multinational corporations (MNCs) have begun shedding marginal assets, leading to order cancellations and delays. This trend underscores a strategic contraction rather than a complete withdrawal from the market. MNCs such as Bristol-Myers Squibb, GSK, and Merck are grappling with impending patent cliffs and are actively seeking new avenues for growth. Recent acquisitions, including Johnson & Johnson's $14.6 billion purchase of Intra-Cellular Therapies, signal a shift towards reinforcing core business areas during this transitional phase. WuXi AppTec's Distinctive Business Model WuXi AppTec's strength lies not only in its research capabilities but also in its CRDMO (Contract Research, Development, and Manufacturing Organization) model, which encompasses the entire drug lifecycle. This integrated solution allows WuXi AppTec to address all client needs in drug development while maintaining a focus on quality, which is paramount for clients. By leveraging its robust R&D capabilities, WuXi AppTec can drive new client acquisition and ensure a consistent flow of high-quality products. Recent expansions in its capacity for GLP-1 drugs showcase its proactive approach to emerging market demands. As of the JPMorgan Conference, WuXi AppTec reported that its peptide solid-phase synthesis capacity will exceed 100,000 liters by the end of 2025. The Future: Preparing for Cyclical Changes WuXi AppTec's strategic asset sales and focus on core business areas signal a keen awareness of cyclical market dynamics. By enhancing its D and M capabilities, the company is positioning itself to capitalize on future growth opportunities. The ongoing refinement of these operational areas indicates a commitment to maintaining stability through economic fluctuations. As the biopharmaceutical industry evolves, WuXi AppTec's proactive measures and strategic foresight could serve as a model for other companies seeking resilience amidst uncertainty. While current challenges may seem daunting, history shows that with careful navigation, the industry will rebound, allowing firms like WuXi AppTec to thrive once more. The cyclical nature of the market underscores the importance of adaptability, ensuring that businesses can weather both favorable and unfavorable conditions.

9月7日，由中国医药工业信息中心主办，中国医药工业研究总院指导，四川省经济和信息化厅承办，四川省医药行业协会智慧支持的“2024年（第41届）全国医药工业信息年会暨2023年度中国医药工业百强榜单发布会”在成都开幕。 大会同期发布了备受行业关注的2023年度中国医药工业百强企业。中国医药集团有限公司、华润医药控股有限公司、齐鲁制药集团有限公司位列前三甲。 1 中国医药集团有限公司 2华润医药控股有限公司 3齐鲁制药集团有限公司 4上海复星医药（集团）股份有限公司 5中国远大集团有限责任公司 6石药控股集团有限公司 7广州医药集团有限公司 8上海医药（集团）有限公司 9扬子江药业集团有限公司 10修正药业集团股份有限公司 11江苏恒瑞医药股份有限公司 12正大天晴药业集团股份有限公司 13诺和诺德（中国）制药有限公司 14拜耳医药保健有限公司 15四川科伦药业股份有限公司 16江西济民可信集团有限公司 17晖致制药（大连）有限公司 18阿斯利康制药有限公司 19长春高新技术产业（集团）股份有限公司 20威高集团有限公司 21山东步长制药股份有限公司 22新和成控股集团有限公司 23珠海联邦制药股份有限公司 24人福医药集团股份公司 25丽珠医药集团股份有限公司 26赛诺菲（中国）投资有限公司 27西安杨森制药有限公司 28北京诺华制药有限公司 29杭州默沙东制药有限公司 30石家庄以岭药业股份有限公司 31鲁南制药集团股份有限公司 32华北制药集团有限责任公司 33江苏济川控股集团有限公司 34深圳市东阳光实业发展有限公司 35江苏豪森药业集团有限公司 36普洛药业股份有限公司 37天津市医药集团有限公司 38上海罗氏制药有限公司 39浙江华海药业股份有限公司 40山东新华制药股份有限公司 41江苏鱼跃医疗设备股份有限公司 42沈阳三生制药有限责任公司 43天士力医药集团股份有限公司 44费森尤斯卡比（中国）投资有限公司 45云南白药集团股份有限公司 46成都倍特药业股份有限公司 47乐普（北京）医疗器械股份有限公司 48山东鲁抗医药股份有限公司 49信达生物制药（苏州）有限公司 50浙江康恩贝制药股份有限公司 51石家庄四药有限公司 52默克制药（江苏）有限公司 53葵花药业集团股份有限公司 54浙江海正药业股份有限公司 55浙江医药股份有限公司 56青峰医药集团有限公司 57深圳市海普瑞药业集团股份有限公司 58浙江九洲药业股份有限公司 59华兰生物工程股份有限公司 60哈药集团有限公司 61天津红日药业股份有限公司 62先声药业有限公司 63瑞阳制药股份有限公司 64江苏康缘药业股份有限公司 65东北制药集团股份有限公司 66北京泰德制药股份有限公司 67神威药业集团有限公司 68漳州片仔癀药业股份有限公司 69东富龙科技集团股份有限公司 70辰欣科技集团有限公司 71烟台绿叶医药控股（集团）有限公司 72上海创诺医药集团有限公司 73上海莱士血液制品股份有限公司 74四川好医生攀西药业有限责任公司 75江苏恩华药业股份有限公司 76楚天科技股份有限公司 77四川新绿色药业科技发展有限公司 78浙江仙琚制药股份有限公司 79悦康药业集团股份有限公司 80厦门万泰沧海生物技术有限公司 81成都康弘药业集团股份有限公司 82浙江京新药业股份有限公司 83健康元药业集团股份有限公司 84上海勃林格殷格翰药业有限公司 85玉溪沃森生物技术有限公司 86贵州健兴药业有限公司 87山东齐都药业有限公司 88仁和（集团）发展有限公司 89江苏苏中健康科技有限公司 90南京健友生化制药股份有限公司 91山东金城医药集团股份有限公司 92海思科医药集团股份有限公司 93朗致集团有限公司 94中国医药健康产业股份有限公司 95河南羚锐制药股份有限公司 96深圳信立泰药业股份有限公司 97烟台东诚药业集团股份有限公司 98山西亚宝投资集团有限公司 99卫材（中国）投资有限公司 100郑州安图生物工程股份有限公司 排名范围：按照工业和信息化部“2023年《中国医药统计年报》汇编工作的通知”要求，如期上报完整数据和相关材料的全部医药工业企业 指标依据：按2023年医药工业企业法人单位的主营业务收入前100位 排序数据来源：2023年《中国医药统计年报》

The development history of China's blood product industry can be described as an epic saga of large-scale mergers and acquisitions. In this process, Haier Group, through a carefully planned acquisition strategy, successfully acquired the leading enterprise Shanghai RAAS, realizing deep integration of the upstream and downstream of the blood product industry chain, and thereby achieving significant synergies.   As a leader in the home appliance industry, Haier Group has demonstrated foresight and decisiveness in its strategic layout in the pharmaceutical industry in recent years. Through continuous technological breakthroughs and innovative Internet of Things (IoT) and bioscience solutions, Haier has achieved impressive results in the pharmaceutical field and has successfully established a presence in the industry. Shanghai RAAS, as the leading enterprise in China's blood product industry, possesses abundant plasma resources and a diversified product portfolio, with formidable market position and technological strength.   Haier Group's acquisition of Shanghai RAAS is not just a simple capital operation but a deep integration of resources and strategic synergy. Through the acquisition, Haier Group has incorporated Shanghai RAAS's advantages in plasma resources, product variety, and technological capabilities, further consolidating its position in the pharmaceutical industry. At the same time, Haier Group has leveraged its own technological advantages and IoT solutions to provide strong support for Shanghai RAAS's "plasma expansion" and "plasma depletion" strategies, helping it explore the frontier technologies of biopharmaceuticals.   This acquisition case is undoubtedly a model of resource integration and overall synergy among the giants of China's pharmaceutical industry. It not only propelled Haier Group's transformation towards internationalization and scientific research innovation, but also brought new development opportunities to the entire blood product industry. Through the acquisition, Haier Group not only gained more market share and competitive advantages but also promoted technological progress and industrial upgrading in the entire industry.   In addition to acquisitions, Haier Group has also made significant investments and explorations in medical technology innovation. By establishing a platform for industrialization of medical and engineering technology innovations, Haier Group has accelerated the transformation and application of medical technology research results, bringing more innovative products and services to the medical industry. These innovative products and services not only improve the efficiency and quality of medical services but also meet people's higher pursuit of healthy living.   In summary, through strategic initiatives such as the acquisition of Shanghai RAAS, Haier Group has successfully achieved deep integration and strategic synergy of the blood product industry chain, injecting new vitality and impetus into the development of China's pharmaceutical industry. At the same time, Haier Group has actively explored and practiced medical technology innovation, making positive contributions to promoting technological progress and industrial upgrading in the medical industry.