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, 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.
Copyright 2013 JCN Newswire. All rights reserved. www.japancorp.net
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