Shanghai Pharmaceuticals has signed a definitive agreement to acquire Cardinal Health’s pharmaceutical and medical products distribution business in China for $1.2bn.
The acquisition conforms to Shanghai’s strategic objective to further expand its distribution, speed up national layout and enhance service contents.
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Shanghai Pharmaceuticals chairman Zhou Jun said: “Amid the national healthcare reform, the acquisition of the Cardinal Health China business will further strengthen our leadership in the distribution and retail pharmacy network, and expedite our transformation to become a modern global healthcare provider.
“This will also facilitate the growth of our pharmaceutical manufacturing business, enabling us to play a significant role in the government’s ‘Healthy China’ initiative.”
Cardinal Health’s business in China is divided into five categories that comprise national drugs and medical devices distribution, hospital direct sales, special drugs, specialist pharmacies and commercial technology segments.
However, the sale does not include the US-based healthcare company’s remaining businesses in China, including its recently acquired patient recovery business Cordis, medical sourcing team or other functions.
Financial advisory and asset management company Lazard operated as the financial advisor for Cardinal Health, and Jones Day and Jun He served as its legal advisors.
Subject to closing conditions and regulatory clearances, the transaction is expected to conclude by the end of the company’s fiscal year.
Upon closing of the transaction, Cardinal Health expects to move its employees, infrastructure, and various systems and processes that support the business to the Chinese firm.
Last month, Shanghai Pharmaceuticals issued a clarification that it submitted the first and second rounds of bids to Cardinal on 21 July and 15 September this year.
