Domestic

Sinopharm buys Hebei medicine retailer for $197m

(Agencies)
Updated: 2011-01-26 13:22

HONG KONG - Sinopharm Group Co Ltd said on Wednesday it would buy a majority stake in a medicines retail chain operator for up to 1.3 billion yuan ($197.5 million), a bid to expand its pharmaceutical distribution business in China's Hebei province.

In a filing with the Hong Kong bourse, China's largest drug distribution network operator said it would buy a 60 percent interest in Shijiazhuang Le Ren Tang Pharmaceutical Chain Co Ltd, a medicine retail chain in Hebei province, from Le Ren Tang Pharmaceutical Group Co Ltd.

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Sinopharm will also buy a 60 percent equity interest in Sinopharm Le Ren Tang Co Ltd, which will hold the distribution business of Le Ren Tang Pharmaceutical Group, and the Hong Kong firm will further inject 60 million yuan capital into the unit.

The cooperation with Le Ren Tang Pharmaceutical Group is expected to increase Sinopharm's pharmaceutical sales in Hebei to 10 billion yuan in the future, helping the company rapidly dominate the pharmaceutical market in Hebei, Sinopharm said.

Le Ren Tang Pharmaceutical Group held 30 percent of the market share in the pharmaceutical distribution market in Hebei province, Sinopharm said, citing statistics in 2009.