Alliance Boots to invest in China’s pharmaceutical market
Alliance Boots has announced it will acquire a 12% share in China’s Nanjing Pharmaceutical Company Limited for a total of approximately £56 million. Nanjing Pharmaceuticals is China’s fifth-largest pharmaceutical wholesaler, which has a market capitalisation of approximately US $682 million.
Alliance Boots is the owner of Europe’s largest pharmacy chain. It first entered the Chinese pharmaceutical distribution market in 2008, through a joint venture with Guangzhou Pharmaceuticals Corporation. This new deal with Nanjing Pharmaceuticals will strengthen the unity between Alliance Boots and China’s government and regulators.
“We are delighted to be partnering with such an established player in the Chinese pharmaceutical market and believe there is huge potential in working together to create a great healthcare distribution network. This agreement builds on the success we have already had in China and further strengthens our commitment to the country as well as our willingness to play an active role in the evolution of the market in partnership with the authorities and key players. We believe that this strategic investment marks an important step in our long term development in Asia.”
Stefano Pessina, Executive Chairman, Alliance Boots.
This transaction is subject to various regulatory approvals. Once completed, Alliance Boots will become the second largest shareholder Nanjing Pharmaceuticals and will have Board and operational management representation in the company.
Stefano Pessina, Executive Chairman of Alliance Boots, hopes to gain a 20 – 30% share in the Chinese pharma market in the future and also plans to expand the company into Latin America, as well as more of Asia.
Alliance Boots eyes major China expansion (The Telegraph)
Don't miss your daily pharmaphorum news.
SUBSCRIBE free here.