The China Syndrome

On Friday, I pointed to China as a big growth opportunity for drug wholesalers. (See 3 Ways for Drug Wholesalers to Grow.) I didn’t have to wait long to be proven right.

On Monday, Alliance Boots announced a joint venture with Beijing Med-Pharm to acquire a 50 percent stake in Guangzhou Pharmaceuticals Corp., the third-largest pharmaceutical wholesaler in China.

• UK Story: Alliance Boots in link-up with Chinese pharmacy wholesaler
• US Story: Beijing Med-Pharm to get stake in Chinese drug wholesaler

In addition to its retail operations, Alliance Boots is one of the three largest drug wholesalers in Europe. Readers of this blog may recall that its UK division (Alliance Unichem) is working with Pfizer to consolidate UK product distribution. (See Pfizer's UK Deal: Change is Here!)

The reality of global drug distribution is getting closer, but the big US wholesalers – AmerisourceBergen Corp (NYSE:ABC), Cardinal Health Inc (NYSE:CAH), and McKesson Corp (NYSE:MCK) – remain on the sidelines. How much longer can they afford to wait?