Alibaba’s new deal puts pharmacy assets into healthcare unit
Chinese giant Alibaba is entering a new deal wherein it will inject its pharmacy assets into a listed healthcare unit. This deal will bring newly issued shared to parent Alibaba from Ali Health, increasing its holding from 48.1% to 56.2%. The deal is valued at HK$10.6 billion.
In this deal, Alibaba Health Information Technology Ltd will buy Ali JK nutritional Products holding Ltd. This company controls the sale of sale of medical devices, healthcare products, adult products, and other healthcare related services on Alibaba Tmall platform. This deal will also increase the voting of parent Alibab in Ali Health to 67.5%.
In Chinese market, where other healthcare companies like Tencent holding backed up by WeDoctor and Ping An healthcare are grooming with all their effort, this deal will give new push to Ali Health. In this competitive environment, Ali Health will get a bolster with great brand recognition and new strategies from Alibaba to out-beat the competition.
Alibaba’s CEO explained that healthcare is the most strategic business in China and it should be given priory to grow. Now, Ali Health will definitely get new inflow of ideas to emerge as the most preferred healthcare ecosystem. Ali Health’s CEO also said that this deal will give more opportunities to the company to grow. It will further add more categories to its portal.
Chinese healthcare spending is getting closer to $1trillino by 2020 and in such circumstances, the efforts made by Ali Health will let it grow healthy in the industry. In the coming days, the expertise of the company and its deal will make it highly visible and preferred among all other entities in the industry.