Published By : 07 Dec 2017 | Published By : QYRESEARCH
Walgreens Boots Alliance, or Walgreens.com, one of the leading online pharmacy in the U.S. which is headquartered in the Deerfield in Illinois, has announced that the company will be buying 40% shares in Chinese pharmacy chain of Sinopharm Holding Guoda Drugstores Co. Ltd., which is a sister company of Chinae National Accord Medicines Corporation. The deal will be worth more than $400 million.
Stefano Pessina, CEO at Walgreens, announced that Sinopharm GuoDa is currently operating with franchise retail pharmacies all around the vast country of China and the American company wanted to expand into the emerging economy and find new consumer base. Stefano claims that Sinopharm is China’s primary pharmacy chain and this is a milestone moment for them.
Founder Walgreens Pessina said that his company has had a presence in Chinese market for nearly a decade, but that remained limited to Alliance Boots. Now, the company will have the opportunities to further invest and expand into the pharmaceutical market of the world’s most populated country. Guangzhou is Alliance Boot’s joint venture in China, a wholesaler that operates retail pharmacy chain under local brands.
This expansion plan by Walgreens can be viewed as an answer to its rival, CVS’s acquisition of Aetna for a whooping US$69 billion deal just the last week. Aetna, before being brought, was the third biggest insurer in the United States, besides operating in the developing nation of Brazil. Although, neither Aetna nor CVS have revealed any plans of entering the Chinese territory as yet.
Stocks of Walgreens rose by 1.2% in NYSE on Wednesday after the announcement was made.