by
John R. Fischer, Senior Reporter | November 17, 2017
Cardinal Health has agreed to sell
its Cardinal Health China business to
Shanghai Pharma for $1.2 billion
Cardinal Health has agreed to sell its business in China to Shanghai Pharmaceuticals Holding Co., Ltd. (Shanghai Pharma) for $1.2 billion.
The Ohio-based global, integrated health care service and products company will transfer ownership of its pharmaceutical and medical products distribution business as part of a signed agreement, expecting employees, infrastructure and the systems and processes associated with it to also move to Shanghai Pharma upon completion of the deal.
"It has been an honor to serve the people of China through our distribution business for the past seven years," George Barrett, chairman and CEO of Cardinal Health said in a statement. "We recognize that significant scale is required to be a market leader in China and with that in mind, we are delighted to announce that Shanghai Pharma has agreed to purchase our distribution business in China.”
Cardinal Health recently
acquired its patient recovery business from Medtronic this year for $6.1 billion. The agreement does not include the sale of this or other remaining businesses of Cardinal Health in China, such as Cordis and its medical sourcing team.
The addition of the pharmaceutical and medical products distribution business is expected to promote the growth of Shanghai Pharma in the pharmaceutical manufacturing business, as well as its leadership.
"Amid the national health care 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 health care provider,” Mr. Zhou Jun, chairman of Shanghai Pharma, said in a statement. “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."
The transaction is expected to be completed by the end of Cardinal Health’s fiscal year, subject to closing conditions and regulatory clearances.
Cardinal Health did not respond for comment.
