Mitsubishi Corporation and MEDIPAL Team Up with Local Partners t
Mitsubishi Corporation and MEDIPAL Team Up with Local Partners to Expand Healthcare Business in China
Deal marks the second investment of its kind in a pharmaceutical wholesaler in Beijing
Beijing, July 26, 2013 - (JCN Newswire) - Medipal Holdings Corporation (MEDIPAL) and Mitsubishi Corporation (MC) have each purchased 20 percent of shares in major Chinese pharmaceutical wholesaler, Sinopharm Group Beijing Tianxingpuxin Bio-med Sinopharm Holding Co., Ltd. (Tianxingpuxin) in Beijing.
As part of efforts to gain a foothold in China's booming healthcare business, MEDIPAL and MC signed a comprehensive strategic alliance in October 2009 with Sinopharm Group Co., Ltd. (Sinopharm Group), China's largest pharmaceutical distributor and wholesaler. The alliance began with MEDIPAL and MC acquiring shares in Sinopharm Group's affiliate, Sinopharm Group Beijing Huahong Co.,Ltd. (Huahong). The acquisition of additional shares, this time in Tianxingpuxin, goes a far way in strengthening that partnership. Through this investment, the Sinopharm Group, MEDIPAL and MC partnership will develop a top class health care business in Beijing, one of China's biggest health care markets, and lay a strong foundation for taking advantage of reforms occurring in China's rapidly advancing health care system.
Over the last five years, the Chinese pharmaceutical industry has achieved an average growth of 25 percent per annum. However, a complex inefficient distribution network of more than 10,000 second and third-tier pharmaceutical distributors has led to increases in the cost of medical treatment. This in a context in which the challenge of reducing medical costs is more and more pressing given China's aging population and low birthrate. Sinopharm's expertise and well-established foundation in the Chinese healthcare market combined with the know-how gained by MEDIPAL and MC in streamlining distribution and sales and the delivery of efficient hospital solutions in the Japanese market creates a strong China-Japan collaborative presence, which is well-positioned to help streamline the distribution of medical supplies, materials and equipment, and improve supply processing and distribution services in hospitals, ultimately contributing to the reduction of medical costs in China.
For its part, Huahong will be providing management services related to the supply, purchasing, delivery and ordering (referred to as Supply Processing and Distribution, or SPD) of hospital medical supplies in one of Beijing's main hospitals. SPD is being installed in hospitals in China for the first time, and marks the start of efforts by Huahong and Tianxingpuxin to develop the hospital outsourcing business in China, based on SPD solutions.
About Mitsubishi Corporation
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. With over 200 bases of operations in approximately 80 countries worldwide and a network of over 500 group companies, MC employs a multinational workforce of nearly 60,000 people. For more information, please visit www.mitsubishicorp.com.
Mitsubishi Corporation Tel: +81-3-3210-2171 Fax: +81-3-5252-7705
Copyright 2013 JCN Newswire. All rights reserved. www.japancorp.net
Provider ID: 00027127