Alibaba to inject online pharmacy business into listed healthcare unit
Category: #health  By Pankaj Singh  Date: 2018-05-30
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Alibaba to inject online pharmacy business into listed healthcare unit

Alibaba Group Holding Ltd, the Chinese e-commerce giant will be injecting some of its online pharmacy business to Alibaba Health Information Technology for HK$10.6 billion ($1.35 billion). Alibaba Group will be selling Ali JK Nutritional Products Holding Ltd, a part of the Alibaba Tmall platform. Ali JK Nutritional Products controls the sale of healthcare products, medical devices, healthcare services and adult products.

Through the deal Alibaba will receive shares in Ali Health which will increase Alibaba’s economic interest in the form from 48.1% to 56.2%. The deal will also give Alibaba a voting interest of 67.5% in Ali Health. The deal will bolster Ali Health’s position in the rapidly growing healthcare technology market of China. Companies like WeDoctor, a Tencent backed platform and Ping An Healthcare have created a competitive scenario in the healthcare industry in China where Ali Health have to vie to hold their prominent positions.

Daniel Zhang, CEO, Alibaba, reportedly expressed his ambition of turning Ali Health into China’s best healthcare ecosystem with the reinforcement the organization will receive through the deal. He added that healthcare is a strategically important field for Ali Health and the deal would help the firm capture the sphere. He also added that the deal would help the firm to expand its businesses and offer new health categories to patients.

According to a notable consultancy, the China healthcare industry spending should surpass $1 trillion by 2020 which is a significant increase from the 2011 estimates $357 billion. The growth will be augmented by technology firms looking to make inroads into the growing private healthcare market.

Ali Health said that the business unit, namely, Ali JK Nutritional Products Holding Limited, that is being injected into Ali Health had generated a gross merchandise volume of around ¥20.56 billion ($3.21 billion) in the financial year to March 31st with over 3,300 related merchants.

The deal is subject to approval from Ali Health shareholders and the Hong Kong stock exchange.



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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