Cardinal Health buys Chinese firm for $470m

Cardinal Health (CAH.NYSE), a US drug wholesaler, has acquired Chinese distributor Zuellig Pharma China in a US$470 million deal, establishing a foothold in China’s growing pharmaceutical market, Reuters reported. Cardinal assumed about US$60 million in net debt under the deal’s terms and funded the remainder with cash. The privately-held Zuellig Pharma China, known locally as Yong Yu, has annual sales of more than US$1 billion and its offerings include distribution to about 49,000 hospitals and clinics and more than 123,000 pharmacies. While some analysts view the deal as positive over the long term, there are concerns about its immediate impact given regulatory issues in China and the different nature of the Chinese market. China is expected to overtake Japan as the world’s second-largest pharmaceutical market behind the US in 2015.