Page 24 - Fortune-November 01, 2018

ROBO-ACQUIRER
An M&A spree
helped XPO
Logistics become a 19
supply-chain giant;
tech like this drone
is cementing its XPO LOGISTICS
dominance. U.S. (XPO, $102)

3.4
16 17 18 2.0 1.4

TENCENT CELLTRION JIANGSU HENGRUI XPO LOGISTICS, which special-
HOLDINGS SOUTH KOREA ($251) MEDICINE izes in trucking and other sup-
ply-chain services, has grown
CHINA (TCEHY, $35) CHINA ($8) from $177 million in sales
in 2011 to $17 billion today,
thanks largely to an incredi-
3.7 3.6 3.4
2.2 1.5 2.2 1.4 2.1 1.3 ble run of acquisitions. After a
pause of a couple of years, it’s
shopping again. In August, XPO
TENCENT’S messaging app, CELLTRION specializes in “bio- OVER THE past year, Hengrui, said it had its eye on a dozen
WeChat, recorded 1 billion similars”—cheaper generic China’s largest pharma com- other companies and is pre-
monthly active users earlier versions of the pricey “bio- pany, has received half-a-dozen pared to spend up to $8 billion.
this year—a sign of how indis- logic” drugs that are among approvals from the FDA, giving But XPO also has opportunities
pensable it has become in con- Big Pharma’s bestsellers. Wall global sales at the generic- and for organic growth. In April, it
necting friends, linking con- Street analysts project that innovative-drugs manufacturer launched XPO Direct, which
sumers with businesses, and the firm could achieve up to a boost—and increasing con- allows retailers to rent space
facilitating China’s $12 tril- 25% future annual growth, with fidence at home, where drug- from XPO in areas where the
lion in annual mobile payments. sales in multiple markets. U.S. contamination scares have left stores don’t have warehouses.
Still, Tencent’s core revenue regulators approved this coun- patients skeptical about the in- This enables retailers to better
stream is gaming, which ac- try’s first biosimilar in 2015. dustry. Revenue in the first half fulfill the e-commerce prom-
counts for up to two-thirds of Since then, Celltrion and its of 2018 grew 22%, to $1.12 bil- ises they’ve made in their ef-
the company’s $35 billion in- partners have won a thumbs- lion. Hengrui is also China’s forts to fend off Amazon. It’s
come. As Chinese government up from an FDA advisory panel market leader in oncologi- a move that could eventually
regulations have restricted that for copies of Johnson & John- cal treatments, where demand make XPO an Amazon compet-
industry, Tencent has begun son’s anti-inflammatory treat- is growing fast as the popula- itor; Deutsche Bank expects
pivoting: In a recent restructur- ment Remicade and, in early tion grays. Its new-drug pipe- XPO Direct to reach $1 billion
ing, it has shifted its focus to- October, for Roche’s block- line should help growth average in revenue within a few years. COUR T ESY OF XPO LOGIS T ICS
ward the industrial Internet. buster cancer drug Rituxan. 26% over the next two years.
Market value: $345.6 billion Market value: $31.4 billion Market value: $30.9 billion Market value: $13.0 billion

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