China Securities Regulatory Commission approves Alliance Boots stake in pharmaceutical distributor

ZUG, Switzerland — Alliance Boots on Monday announced that China Securities Regulatory Commission has approved the group's investment in Nanjing Pharmaceutical Company Limited. This approval, following the authorization recently received from China's Ministry of Commerce, paves the way for the completion of the investment in the coming weeks. 

 

As a result of the investment, Alliance Boots will become the second largest shareholder in Nanjing Pharmaceutical Company Limited with Board and operational management.

 

In September 2012, Alliance Boots announced that it will acquire a 12% stake in Nanjing Pharmaceutical Company Limited, through a private placement, for a total consideration of approximately £56 million ($91 million in today's dollars). Nanjing Pharmaceutical Company Limited, listed on the Shanghai Stock Exchange, is the seventh-largest pharmaceutical wholesaler in China with sales of around $3.3 billion in 2013.

 

Alliance Boots first entered the Chinese market in 2008 through its joint venture Guangzhou Pharmaceuticals Corporation, which operates in complementary geographies and continues its successful development.