Alliance Boots to acquire stake in Nanjing Pharmaceutical Company

Alliance Boots has announced a new collaboration with Nanjing Pharmaceutical Company that will see it acquire a 12 percent stake in the Chinese firm.

Valued at 56 million pounds, the deal will see Alliance Boots become the second-largest stakeholder in Nanjing Pharmaceutical Company, thereby strengthening its position in the Chinese pharmaceutical distribution market.

Nanjing Pharmaceutical Company is the fifth-largest pharmaceutical wholesaler in China and generated sales of around two billion pounds in 2011.

The alliance will also help to bolster the overall Chinese medical industry in its efforts to reach global standards.

Stefano Pessina, executive chairman of Alliance Boots, said: "This agreement … 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."

The company announced a strategic alliance with the US drug store chain Walgreens earlier this year, thus creating one of the world's largest pharmacy-led health and wellbeing enterprises.