HONG KONG, April 7 (Reuters) - Sinopharm 1099.HK, China's largest drug distributor, is considering acquiring Nanjing Pharmaceutical Group Ltd to expand its presence in eastern China, according to a mainland media report.
Sinopharm had entered into a framework agreement with Nanjing’s municipal government, a controlling shareholder of Nanjing Pharmaceutical, 21st Century News Group reported on its website, citing an informed source. The report gave no further details.
Nanjing Pharmaceutical Group, parent of drugmaker and distributor Nanjing Pharmaceutical Co Ltd 600713.SS and Jinling Pharmaceutical Co Ltd 000919.SZ, owns 10 pharmaceutical manufacturing enterprises and operates a distribution network of more than 1,000 outlets in the mainland.
Sinopharm officials were not immediately available for comment.
Shares of Sinopharm gained 5.9 percent to an all-time high of HK$38.60 before ending Wednesday morning trading in Hong Kong at HK$38.45. The broader Hang Seng Index .HSI was up 1.46 percent.
Shanghai-listed Nanjing Pharmaceutical was up 2.4 percent.
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