Jack Ma, Alibaba Founder To Put 200 Million Yuan In Chinese Medical Device Co.
Alibaba Jack Ma has been actively venturing into the Chinese healthcare business over the past few months.
Jack Ma, founder of Alibaba Group Holding Ltd, already one of the richest man of the world and a very investment savvy people, is now eyeing to research more into healthcare industry of China. As mentioned in an article by Forbes, Jack Ma together with some other investors, will gather around 880 million yuan equals to $142 million into China Resources Wandong Medical Equipment, a Beijing based imaging medical devices maker.
A private fund, Yunfeng Capital, which is co-founded by Jack Ma, is going to spend around 200 million yuan or $32 million to get 5.7 million shares or 2.35% ownership stake in the medical firm, as per company filing on Friday.
The filing also shows that the Chinese company’s Alijk, the Hong Kong listed healthcare division and Wandong will offer internet based imaging services. Wandong, along with its high tech expertise will also provide patients analyses CT and MRI scans to online health care platform of Alibaba namely, Yidegu.
The deal is looking possible because of 3 year contract between Wandong’s controlling investors, Wu Guangming’s Jiangsu Yuyue Medical Equipment and Supply Company, and Alijk earlier in April. The contract was signed to support both the companies to look for opportunities in management of medical resources and smart medical gadgets.
The growing and large economy of China has caused in most sectors forcing double digit growth figures. The medical device market of the region has witnessed around 20% growth since the year 2009 and is expected to be valued at $48 million in the current fiscal year, making it world’s second biggest market after United States China’s ministry of health has fortified the use of domestically made equipment in order to cut reliance on foreign companies costly devices. The increasing costs of health in the country are also leading to the force into domestically made devices.
During the past month, Alibaba Group Holding Ltd has been offering actively in the industry of healthcare. Earlier in May, the e-commerce company introduced a 3 to 4 hour delivery service for medical goods, after the launch of online transaction platform on Tmall for web pharmacies, in a big $2.5 billion worth of deal.
Moreover, during the start of the year Yunfeng Capital decided on an investment valued at $80.5 million via a private assignment in a Guangzhou based drug manufacturer, Baiyunshan, which is famous for its Wanglaoji –an herbal tea brand.
Baba stock was down by 2.71% to $88.25 at market close on Monday June 8th.
