Business Activities News
- Guangdong News
Date: 1-Feb-2007 Sources: (People's Daily)
British pharmaceutical giant Alliance Boots PLC has formed a joint venture with China's Guangzhou Pharmaceuticals Corporation (GP Corp) and will enter the booming Chinese pharmaceutical market, sources with GP Corp said Wednesday.
With a total investment of 1.09 billion yuan (about 140 million U.S. dollars), the venture will be a wholesaling operation for pharmaceutical products produced by both companies.
Each company will hold a 50 percent stake in the joint venture.
The deal means that GP Corp will boost its wholesale operations and also expand its retail network and Alliance Boots will have a wholesale presence in 15 countries.
Guangzhou Pharmaceutical Corp. is a state-owned pharmaceutical company, and China's third-largest pharmaceutical wholesaler with a 3 percent market share. It is the leading distributor in south China's Guangdong province with 16 percent of the market.
The company is listed on the Hong Kong and Shanghai stock exchanges and its sales last year were 10 billion yuan (about 1.28 billion U.S. dollars).
Alliance Boots PLC is a leading European pharmacy-led health and beauty company. Its major retail business is in Britain, and it has expanded its wholesale operations to serve over 125,000 pharmacies, hospitals and health centers in 14 countries and regions.
The Chinese pharmaceutical market currently ranks ninth globally with a turnover of 9.5 billion U.S. dollars in 2005. But it is growing by 15 percent annually and is expected to reach 120 billion U.S. dollars in 2020, second only to the United States.
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