Alliance Boots, the company behind the well known UK chemist and wholesale pharmacy, is sitting pretty on a heap load of profit, and its plans for global domination may have Nanjing close to their core as the company gears up for expansion in China.
On 15th May 2013, Boots Alliance announced a trading profit of £1.265 billion for the previous year, while in 2012 the chemist signed a deal with US giant Walgreens for US$16bn, helping to give it access to high market shares in the Americas. Last September here in the Orient, Boots Alliance added to its 50 percent shareholding in China’s sixth-biggest wholesaler of pharmacy products, Guangzhou Pharmaceuticals, with a 12 percent share purchase in Nanjing Pharmaceutical for ¥560 million, the nation’s fifth-biggest.
The deal made Alliance Boots the second largest shareholder in Nanjing Pharmaceutical Company Limited with Board and operational management representation. The agreement was signed after Stefano Pessina, Executive Chairman of Alliance Boots, was met by Yang Weize, Secretary of Nanjing Municipal CPC Committee and in the presence of Nanjing’s mayor Ji Jianye.
Representing Nanjing Pharmaceutical was Zhou Yaoping, Chairman of Nanjing Pharmaceutical, who said, “The cooperation with Alliance Boots is of great significance in the context of the slowing global economy and China’s medical and healthcare reforms. By introducing Alliance Boots advanced supply chain management technology and experience, Nanjing Pharmaceutical will be able to improve its management practices, achieve greater performance, and help China’s medical industry reach global standards, as well as support the pharmaceutical sector in establishing a vibrant social responsibility.”
Stefano Pessina commented, “We are delighted to be partnering with such an established player in the Chinese pharmaceutical market and believe there is huge potential in working together to create a great healthcare distribution network. This agreement builds on the success we have already had in China and further strengthens our commitment to the country as well as our willingness to play an active role in the evolution of the market in partnership with the authorities and key players. We believe that this strategic investment marks an important step in our long term development in Asia.”
Quoted in the UK’s Daily Mail newspaper, Mr. Pessina further added that the Chinese market is “the last big piece of the jigsaw”.
The day we can step into our favourite chemist in Xinjiekou and pick up a bottle or two of our preferred Botanics product may not be so far away.
