Shanghai Pharma IPO Looks Like Good Medicine 上海医药IPO似为一剂良药

With all the hype surrounding Renren’s overpriced IPO in New York, it’s easy to lose sight of other offerings coming out of China that look a bit more stable, especially in fast-evolving areas like pharmaceuticals. With China trying hard to create a sustainable healthcare system to replace an older one that died with the end of its state-run work units, the upcoming $2 billion-plus Hong Kong listing of Shanghai Pharma looks particularly attractive. (English article) This company has a number of strong selling points, including its base in China’s commercial hub, strong positions in both drugmaking and distributing, and partnerships with the likes of Roche (Zurich: RO.SW). It also counts Singapore’s Temasek and Pfizer (NYSE: PFE) among its investors, and with the capital raising should be in a strong position to help lead an industry consolidation being heavily promoted by Beijing. Its main drawback — which some might also see as an asset — is its background as a state-run company, which could make it move more slowly than privately funded smaller rivals. Look for big things from companies in this space going forward, which will be able to feed off their mass home market to fuel growth and eventually export low-cost generic drugs overseas.

Bottom line: Shanghai Pharma’s upcoming IPO looks like a strong bet on the future of China’s health care industry.

就在大家都关注人人网在纽约高估值上市的时候，人们很容易忽视另一家看起来更为稳健的企业上市的消息。中国正努力打造一个可持续的医疗体系，在此背景下，上海医药<601607.SH>拟赴港IPO募集20多亿美元的消息尤其值得关注。这家公司有许多强大卖点，如坐落于中国商业中心，在制药和分销领域实力强劲，与罗氏等跨国制药巨头<ROG.VX>有合作，其投资方还包括新加坡的淡马锡和辉瑞公司<PFE.N>。随着此次境外融资，上海制药应能在帮助引领中国医药行业整合方面占据有利位置。其主要的弱点——有些人则认为是优势——是：这是一家国营企业，可能不如规模较小的私营企业动作敏捷。未来可以期待这个行业的公司能够大展宏图，借助国内庞大的市场来促进自身成长，并最终向海外出口低成本非专利药品。

一句话：上海医药的IPO看来像是对中国医疗产业未来的强有力压注。

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