Dublin, Ohio-based Cardinal Health is looking to sell its China business in a deal that could be worth up to $1.5 billion, unnamed sources told Reuters.
Here are five things to know.
- Cardinal acquired Zuellig Pharma China in 2010, becoming the first large U.S. wholesaler to invest in the Chinese drug distribution market. Since then, Cardinal has acquired several other Chinese distributors and renamed the whole business Cardinal Health China. The business operates 16 distribution centers in 20 cities and generated more than $3.5 billion in revenue last year, according to the report.
- Cardinal seeks to leave the Chinese market over concerns the country's upcoming drug distribution reform could hinder its growth, sources told Reuters.
- The sources said Cardinal hired the asset management firm Lazard as an advisor for the sale, and the first round of bidding will likely occur at the end of this week.
- The potential divestiture comes four months after Cardinal purchased Medtronic's medical supplies unit for $6.1 billion.
- Cardinal declined Reuter's request for comment.
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