Shanghai Pharma Gets Cardinal Health Deal

Walgreens Invests in Sinopharm Retail Arm

China Drug Distribution: More "Two Invoice" Changes

Cardinal to Depart China: A Good Play for Distributors

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

Shanghai Pharmaceuticals Holding / Equity Bottom-Up

Shanghai Pharmaceuticals Holding (2607 HK)

<p>One of the questions posed during the discussion of <a href="https://www.smartkarma.com/entities/1533" target="_blank" data-smartkarma-citation="entities:1533:1">Cardinal Health Inc (CAH US)</a> 's plan to sell its China drug distribution business was the undemanding valuation of US$1.2-1.5 billion (estimated 6.0-7.5x trailing EBITDA). We now have several quarters' results from the leading distributors which reflect the impact of the introduction of the "two invoice" policy and elimination of the 15% markup on drugs for hospitals. As shown below, industry growth is decelerating. The impact varies by company…</p>

One of the questions posed during the discussion of Cardinal Health Inc (CAH US) 's plan to sell its China drug distribution business was the undemanding valuation of US$1.2-1.5 billion (estimated 6.0-7.5x trailing EBITDA). We now have several quarters' results from the leading distributors which reflect the impact of the introduction of the "two invoice" policy and elimination of the 15% markup on drugs for hospitals. As shown below, industry growth is decelerating. The impact varies by company…

Guangzhou Baiyunshan Pharmaceutical Holdings (874 HK)

Guangzhou Baiyunshan Pharmaceutical Holdings

Deceleration Likely Driving Cardinal Valuation