Shanghai Pharmaceuticals has issued a clarification on media reports about its acquisition of Cardinal Health’s pharmaceutical distribution business in China.
The firm informed that the submission of first and second rounds of bids for the potential acquisition of Cardinal China occurred on 21 July and 15 September of this year, respectively.
Shanghai further noted that the second round is still at the non-exclusive bidding stage and has uncertainties.
Details of the bidding process and terms such as bidding price, Cardinal China’s operational and financial conditions have not been divulged due to confidentiality requirements.
Cardinal China business comprises national drugs and medical devices distribution, hospital direct sales, special drugs, specialist pharmacies and commercial technology segments.
The company’s distribution network, which caters to 322 cities and around 11, 000 medical organisations, includes 14 hospital direct sales firms, 17 distribution centres and 30 DTP pharmacies.
Last year, Cardinal’s main business income in the country was reported to be approximately CNY25.4bn ($3.83bn).
The acquisition is in line with Shanghai’s strategic goal to expand distribution, accelerate national layout and improve service contents.
Shanghai expects that upon completion, the transaction would bolster its footprint in pharmaceutical distribution industry of China, including import products agency, professional third-party pharmaceutical logistics, DTP pharmacies and distribution of medical devices.
In addition to the assessment of Cardinal China’s business development in the future, the acquisition proposals are subject to further negotiations between the parties following the selection and acceptance of relevant submissions from the bidders.