Alliance Boots up China investment

Alliance Boots continues its expansion in China with new investment totalling £56 million (560 million yuan or US$90.8 million).

Alliance Boots has acquired a 12 per cent stake in Nanjing Pharmaceutical Company, making it the second largest shareholder after Nanjing Pharmaceutical Group.

Shanghai-listed NPC is the fifth largest pharmaceutical wholesaler in China with sales of around £2 billion (20 billion yuan) in 2011. It operates distribution centres in 12 cities across eight provinces.

Alliance Boots first entered the Chinese pharmaceutical distribution market in 2008 through its Guangzhou Pharmaceuticals Corporation joint venture.

“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,” said Stefano Pessina, executive chairman of Alliance Boots.

The investment also marks an important step in Alliance Boots’ long term development in Asia.

According to Nanjing Pharmaceutical chairman Zhou Yaoping, the cooperation with Alliance Boots is of great significance in the context of the slowing global economy and China’s medical and healthcare reforms.

GB

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