Alliance Boots has completed the formation of its joint-venture company in China, Guangzhou Pharmaceuticals Corporation (GP Corp), for approximately £41 million.

The Chinese partner in the 50:50 venture is Guangzhou Pharmaceutical Company and Alliance Boots made its investment through subsidiary Alliance BMP.

GP Corp is the fourth largest wholesaler in China, with about 3 per cent market share, and is the leader in its home province of Guangdong, with market share of approximately 16 per cent.

The new business will report to Ornella Barra, board member and wholesale and commercial affairs director of Alliance Boots.

Alliance Boots executive chairman Stefano Pessina said: “China is an exciting market for us to enter and this joint venture is in line with our strategy of building our international presence by penetrating important geographical territories.”

China is the seventh largest pharmaceutical market in the world and is expected to rank fifth by 2010. The market is fragmented and largely regional. It principally involves supply to hospital pharmacies.

Pessina added: “Bringing together the experience of Alliance Boots with GP Corp’s excellent local knowledge and market position will make GP Corp a powerful business, well-placed to benefit from both the rapid expansion of the Chinese healthcare market and further consolidation opportunities as they arise.”

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