This is a major acquisition and just less than a couple weeks ago Cardinal purchased Kinray in New York for 1.3 billion who is a leading pharmaceutical distributor that services over 2000 independent drug stores. The press release continues to state that by 2015 that China will be the second largest pharmaceutical industry in the world. BD
From the website:
“Our distribution network covers all provinces, over 400 cities, 3,200 wholesalers, 17,000 hospitals, and 85,000 retail pharmacies. We directly distribute to hospitals and retail pharmacies in several major markets, including Beijing, Shanghai, Shenyang, Wuhan, and Chongqing.
Over the past several years, we have completed additional acquisitions of direct distribution companies in Shanghai, Shenyang, Wuhan, and Chongqing, allowing Zuellig Pharma China to reach hospital and retail pharmacy customers in one distribution step, from manufacturer to Zuellig Pharma China to customer. We have developed additional distribution channels, including retail pharmacy, medical device, and vaccines, and extended our logistics services to become a noted and reputable cold chain and clinical trial management logistics partner.”
DUBLIN, Ohio and SHANGHAI, Nov. 29, 2010 /PRNewswire-FirstCall/ -- Cardinal Health today announced the completion of a $470 million acquisition of privately held Zuellig Pharma China, a leading health care distribution business in China, known locally as Yong Yu, and the largest pharmaceutical importer in the country. The transaction extends Cardinal Health's distribution and services presence into one of the world's fastest growing health care markets and provides a platform to drive long-term growth.
With today's closing, Cardinal Health is well positioned in the pharmaceutical distribution market in China, which is expected to grow at a compound annual growth rate of 20 percent through 2014 and become the second largest pharmaceutical market in the world after the United States.