By Joanne Chiu
Shanghai Pharmaceuticals Holding Co. (2607.HK) plans to buy the pharmaceutical distribution network of U.S. company Cardinal Health Inc. in Hong Kong and mainland China for US$557 million.
The Hong Kong listed pharmaceutical company said Wednesday that it has agreed to buy the entire interest in Cardinal Health's unit -Cardinal Health (L) Co. in a bid to broaden the coverage of its distribution network in China and build up direct-to-pharmacy chain with specialty brands.
Cardinal Health (L) Co. operates 14 direct sales companies and 17 distribution and operation centres in China with a total storage area of around 146,000 square meters and around 7,000 square meters cold storage capacity, it said.
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