Fosun Pharma move into highend medical devices by acquiring Alma Lasers
In May 2013, Shanghai Fosun Pharmaceutical Group Co. Ltd. (SH: 600196; HK: 02196) and entities related to the company announced the acquisition of a 95.2% stake in Alma Lasers Ltd. for US$221 million. The deal is a significant platform acquisition marking Fosun’s entry into the high-end medical devices. It is also a bet that consumers in the BRICs will increasingly demand beauty treatments.
Alma has a 15% market share in highend aesthetic devices used for applications such as hair removals, wrinkle reductions, and other similar non-invasive aesthetic procedures. The deal further establishes Fosun as the most prolific privately owned Chinese overseas deal maker.
Reckitt Benckiser enters the TCM market through acquisition of Chinese sore-throat remedies
In Q1 2013, UK FMCG giant Reckitt Benckiser announced the acquisition of Golong Medicine, a Traditional Chinese Medicine (TCM) company known in China for itssore throat remedies. Reckitt’s chief executive, Rakesh Kapoor, said Reckitt may use Golong as a sales platform to market “western healthcare products” as well. In 2012 Reckitt announced the company would set up its North Asia headquarter in Beijing.
At the time of the announcement Reckitt said the company aims to introduce 19 new brands to China by 2020 and expand sales tenfold to 10 billion yuan (US$1.57 billion). Reckitt’s bet on consumer healthcare has so far been a success, especially in China. The company’s 2010 acquisition of SSL International, the maker of Durex condoms, has signficantly boosted Reckitt’s business in China, where Durex is a premier condom brand.