HONG KONG
US drug distributor Cardinal Health has put its China business up for sale, drawing keen interest from state-backed Chinese pharmaceutical firms in a deal that may be worth up to $1.5 billion, sources familiar with the matter said.
Shanghai Pharmaceutical Holding Co Ltd, China Resources Pharmaceutical Group Ltd and Sinopharm Group Co Ltd are among those wanting to buy Cardinal Health China, one of the nation’s largest drug distributors, said the first source who had direct knowledge of the matter. A second source confirmed the sale process.
Cardinal wants to exit over worries China’s upcoming drug distribution reform could slow its growth, according to the first source. The Ohio-based company has also been diversifying, and in April announced a $6.1 billion deal for Medtronic Plc’s medical supplies units.
