Pharmaceutical companies have found impressive growth in China in the past few years as healthcare quality is on the rise and consumers take more of an interest in western style medicines. A large population with a quickly ageing majority puts China at the top of any medical suppliers’ list.

chiense med

Stefano Pessina, Alliance Boots chief executive, said that he was now eyeing between 20% and 30% of the Chinese pharmaceutical distribution market, which has grown at an average annual rate of 16.4% over the past decade.

“In 10 years, I hope we will be one of the major players in China or we will be, together with other companies, part of one of the major players in China,” Mr Pessina told Reuters.

Mr Pessina, who presided over the turnaround of his own ailing family pharmaceutical business, said China was committed to improving its healthcare sector.

Alliance Boots has proved their plans for aggressive expansion by buying a stake in a second local pharmaceutical supplier in mainland China:

The owner of Europe’s largest pharmacy chain said on Sunday that it had completed a deal with Nanjing Pharmaceutical that will help the companies to create a healthcare distribution network in China.

Alliance Boots already has ties with the world’s second largest economy through its joint venture with Guangzhou Pharmaceuticals, which produces and markets medicine in the country.  Alliance Boots will become the second largest shareholder in Nanjing, which has distribution centres in 12 cities across eight provinces in China.

The deal, which is subject to regulatory approval, will also strengthen Alliance Boots’ relationship with the Chinese government.

Read more from The Telegraph here.

We continue to see a very focused expansion in the Asia markets with an emphasis on China, as it is now often noted as one of the lynchpins of growth.

Stefano Pessina, executive chairman of Alliance Boots, said that it had completed a deal with Nanjing Pharmaceutical that will help to propel the company's presence in China-- it's current focus market.

Stefano Pessina, executive chairman of Alliance Boots, said that it had completed a deal with Nanjing Pharmaceutical that will help to propel the company’s presence in China– it’s current focus market.

“We cannot create a global company without being in Europe and in the US and in Asia, particularly in China.  China is not the only country, there are certainly other countries which are also interesting and probably necessary for a truly global company, but China is by far the most important,” said Stefano Pessina, executive chairman of Alliance Boots.

Read more from the FT here.

Advertisements