Brief:

Fosun Pharma and Chindex International Inc. announced together that they will be strategic alliance.
After having signed the Agreement, Fosun Pharma will hold 25% equity capital at most of Chindex International Inc, and the capital will be used for enlarging and marketing premium healthcare service brand---United Family Healthcare (UFH).

Meanwhile, Fosun Pharma and Chindex International Inc. will establish a joint venture to market medical devices, to achieve mutual complementarities between brand and transaction, and to improve its industry chain system of medical devices, from R&D, production and market at home or aboard.

Full Text:

Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (Fosun Pharma) and its holding subordinate: Fosun Industry (Hongkong) Co., Ltd. (hereafter shorted as Fosun Industrial) held contract-signing ceremony of strategic alliance with Chindex International Inc. (Chindex), meanwhile they also signed agreements on share subscription, and so on.
Chindex is a leading and self-governed American service provider for medical devices and healthcare services in China while Fosun Pharma, focusing itself on research, development, production and market of medicine, is a large leading and professional Chinese Pharmaceutical industry group holding large scale and market in diagnose products, medicine and devices. By having reached agreement of strategic alliance in Shanghai, the two enterprises will optimize their mutual advantage and jointly develop further in Chinese medical service and medical device market.

Having signed the Agreement, Fosun Pharma will purchase from Chindex up to 1.9 million shares of Chindex common stock at $15 per share and the share subscription amount is about $29 million. By subscription hereby mentioned and other methods, Fosun Pharma will hold 25% shares of Chindex at most, added with those shares Fosun Pharma has already held. The fund will be used for expantion of United Family Healthcare network.

Meanwhile, Fosun Pharma and Chindex will together establish a joint venture whose main business is to manufacture and distribute medical devices in China market. The joint venture will merger and operate medical device business of Chindex in China as well as medical device business of Fosun Pharma. The joint venture will be owned 51% by Fosun Pharma and 49% by Chindex.

Through this cooperation, Fosun Pharma will achieve mutual complementarities of brand and sales with Chindex. Meanwhile, Fosun Pharma can help Chindex to focus on developing high-end healthcare service. At present, United Family Healthcare network, a subordinate to Chindex, applying itself to introducing advanced international ideas of healthcare service into China and developing high-end healthecare service, has already been the leading high-end healthcare service brand in China. Not long ago, Fosun Pharma, United Family Healthcare and Shanghai Huashan Hospital signed an agreement intending to co-manage the International Divsion of Huashan Hospital’ Pudong Facility .

At the same time, by recombining and integrating further markets of medical devices, Fosun Pharma will improve its industry chain systems on medical devices, from R&D, production and market at home or aboard, and then speed up its developments further in medical device market.

On the signing ceremony, President and CEO of Chindex, Ms. Robert Lipsion said, “We are very pleased to reach strategic alliance with Fosun Pharma. The agreement has far-reaching significance. Welcome Fosun Pharma to join in, become our large shareholder and also provide us with professional knowledge. Good reliability and performance of Fosun Pharma in China will be valuable for us to achieve high-end healthcare service hospital netwok in China. Strategic alliance is mutual beneficial. We are especially happy to declare Chindex Medical Device Company, to market on medical devices, will be established. With Fosun Pharma’s experiences on marketing medical devices as well as our sales group, we will certainly enlarge our sales in Chinese market and get more thorough performance.

Mr. Chen Qiyu, Chairman of Fosun Pharma said, “Fosun Pharmal feels glad to be a partner of Chindex. Chindex is a well-known brand in Chinese medical device market while United Family Healthcare is a leading brand in high-end healthcare service. We believe that Chindex and United Family Healthcare have great development potentiality as with Chinese economy developing, high-end medical business has been increasing fast. The cooperation between Fosun Pharmal and Chindex is significant win-win cooperation, and will promote mutual fast developments.”