Shanghai Pharma: The commercial expansion is steadily advancing in the buy rating

Shanghai Pharma completed the acquisition and delivery of Kantle's China business on February 2nd, the company announced the completion of the acquisition of Kantle Malaysia, with a final purchase price of $576 million. Upon completion of the transaction, the Company holds a 100% stake in Condell Malaysia through Century Global, a wholly owned subsidiary, and indirectly owns all of its Chinese business entities established in Hong Kong and China through Condre Malaysia.
acquisition progress slightly exceeded market expectations, the commercial sector steadily expanded the acquisition from November 15 announced the formal signing of the acquisition agreement to the recent completion of the settlement, rapid progress, is expected to be achieved in February. Condell China's revenue in fiscal 2016 is 25.5 billion yuan, after the completion of the merger, Shanghai Pharmaceuticals in the domestic pharmaceutical circulation scale will be increased by one to second place. The value of the acquisition of Condell China is outstanding, the company will benefit from DTP business, a large number of import agent varieties, network expansion in some regions, logistics management of advanced experience and technology.
Mergers and acquisitions have become the new driving force of the company's performance growth business, the company is committed to constantly improving the existing national pharmaceutical distribution network, through mergers and acquisitions to fill the gap market, industrial aspects, internationalization has become the company's long-term strategy, around research and development and industrial sectors to do some long-term layout, including overseas registration of varieties and overseas industrial mergers and acquisitions expansion. Extended mergers and acquisitions have become a new driving force for the company's performance growth in recent years. (CITIC Construction)