Shanghai Pharma to acquire two drug firms for $570 mn

Shanghai Pharma to acquire two drug firms for $570 mn

Shanghai: Shanghai Pharmaceuticals Holding said on Tuesday it will buy two drug companies for 3.8 billion yuan ($570.1 million), in a bid to boost its distribution network across the mainland.

Shanghai Pharmaceuticals said at a news conference it would buy the two firms which are involved in the manufacture and distribution of medicines.

Last month, Shanghai Pharmaceuticals announced its desire to acquire a majority stake in rival China Health System to further expand into northern China.

The financial details were not disclosed.

Shanghai Pharmaceuticals, the Chinese partner of Roche Holding AG, also plans to raise $1.2 billion to $1.5 billion in a Hong Kong IPO in the second quarter of 2011, sources close to the deal told Reuters in October.

The firm said it plans to use the proceeds to fund buys of distribution network rivals.