Mitsubishi Corporation

Press Room

July 26, 2013
Medipal Holdings Corporation
Mitsubishi Corporation

Mitsubishi Corporation and MEDIPAL Team up with Local Partners to Expand Healthcare Business in China
Deal marks the second investment of its kind in a pharmaceutical wholesaler in Beijing

Medipal Holdings Corporation (MEDIPAL) and Mitsubishi Corporation (MC) have each purchased 20% of shares in major Chinese pharmaceutical wholesaler, Sinopharm Group Beijing Tianxingpuxin Bio-med Sinopharm Holding Co., Ltd. (Tianxingpuxin) in Beijing.
 
As part of efforts to gain a foothold in China’s booming healthcare business, MEDIPAL and MC signed a comprehensive strategic alliance in October 2009 with Sinopharm Group Co., Ltd. (Sinopharm Group), China’s largest pharmaceutical distributor and wholesaler. The alliance began with MEDIPAL and MC acquiring shares in Sinopharm Group’s affiliate, Sinopharm Group Beijing Huahong Co.,Ltd. (Huahong). The acquisition of additional shares, this time in Tianxingpuxin, goes a far way in strengthening that partnership. Through this investment, the Sinopharm Group, MEDIPAL and MC partnership will develop a top class health care business in Beijing, one of China’s biggest health care markets, and lay a strong foundation for taking advantage of reforms occurring in China’s rapidly advancing health care system.
 
Over the last five years, the Chinese pharmaceutical industry has achieved an average growth of 25 per cent per annum. However, a complex inefficient distribution network of more than 10,000 second and third-tier pharmaceutical distributors has led to increases in the cost of medical treatment. This in a context in which the challenge of reducing medical costs is more and more pressing given China’s aging population and low birthrate. Sinopharm’s expertise and well-established foundation in the Chinese healthcare market combined with the know-how gained by MEDIPAL and MC in streamlining distribution and sales and the delivery of efficient hospital solutions in the Japanese market creates a strong China-Japan collaborative presence, which is well-positioned to help streamline the distribution of medical supplies, materials and equipment, and improve supply processing and distribution services in hospitals, ultimately contributing to the reduction of medical costs in China.
 
For its part, Huahong will be providing management services related to the supply, purchasing, delivery and ordering (referred to as Supply Processing and Distribution, or SPD) of hospital medical supplies in one of Beijing’s main hospitals. SPD is being installed in hospitals in China for the first time, and marks the start of efforts by Huahong and Tianxingpuxin to develop the hospital outsourcing business in China, based on SPD solutions.
 
【Details】
1.Investment scheme
* MEDIPAL and Mitsubishi have each purchased 20% of shares in Tianxingpuxin from Mr. Fan Hong, founder and current vice-president of Tianxingpuxin.
 
2. Outline of Tianxingpuxin
(1) Company Name:            
Sinopharm Group Beijing Tianxingpuxin Bio-med Sinopharm Holding Co., Ltd
(2) Business Activities:        
Wholesale, import, export and sales of pharmaceuticals in China, medical equipment and group purchasing and supply management for hospitals.
(3) Representative:                Liu Yong, CEO
(4) Established:                      July, 2002
(5) Number of Employees:   120
 
3. Outline of MEDIPAL
(1) Head Office:                       2-7-15, Yaesu, Chuo-ku, Tokyo, Japan
(2) Business Activities:        
As a holding company, MEDIPAL HOLDINGS controls, administers and supports the operating activities of companies in which it holds shares in the Prescription Pharmaceutical Wholesale Business, Cosmetics, Daily Necessities and OTC Pharmaceutical Wholesale Business, and Related Business, and conducts business development for the MEDIPAL Group.
(3) Representative:                Shuichi Watanabe, President and CEO
(4) Established:                      May 6, 1923
(5) Number of employees:   11,115 (consolidated, as of March 31, 2013)
 
4. Outline of Mitsubishi Corporation
(1) Head Office:                      2-3-1, Marunouchi, Chiyoda-ku, Tokyo, Japan
(2) Businesss Activities:      
Mitsubishi Corporation has seven Business Groups which develop operations in the diverse fields of Global Environmental & Infrastructure; Industrial Finance, Logistics & Development; Energy; Metals; Machinery; Chemicals; and Living Essentials. In addition to these Business Groups, MC has also recently established its Business Service Group.
(3) Representative:                Ken Kobayashi, President and CEO
(4) Established:                      July 1, 1954
(5) Number of employees:   65,975 (consolidated, as of March 31, 2013)
 

Inquiry Recipient

Medipal Holdings Corporation
Telephone:+81-3-3517-5171 / Facsimile:+81-3-3517-5028

Inquiry Recipient

Mitsubishi Corporation
Telephone:+81-3-3210-2171 / Facsimile:+81-3-5252-7705
PAGE TOP