Trading house Mitsubishi Corp. and drug wholesaler Medipal Holdings Corp. said Thursday they have formed a broad business tieup with China's largest drug distributor, Sinopharm Group Co., to enter the burgeoning Chinese pharmaceutical market.
In their first move, the major trading house and Japan's largest drug wholesaler will invest ¥2.8 billion into Sinopharm Group Beijing HuaHong Co., the Shanghai-based partner's subsidiary, with Mitsubishi taking a 25 percent stake and Medipal a 14 percent stake, they said.
The Japanese and Chinese partners will cooperate in procuring and delivering drugs to hospitals and in operating pharmacies within hospitals.
Sinopharm Group posted net profit of about ¥12.2 billion on sales of ¥572.5 billion in 2008 and employs about 11,000 workers.
Mitsubishi and Medipal, partners in their hospital support business since 2005, said they will limit their joint marketing activities to Beijing for now but may push into markets outside China's capital area in the future.