BioPharm Asia's (BFAR) wholly-owned subsidiary, China Northern Pharmacy Holding Group, has entered into an agreement to acquire all of the outstanding shares of Beijing Zhihe Ruikang Hospital Management (ZHRK), a Chinese hospital management consultation group, for a consideration of RMB2,400,000 (approximately $350,000).
ZHRK said that it has worked in collaboration with premier institutions of higher education such as Peking University, Fudan University and Shandong University, to develop techniques improving the management of medical and health care services and systems.
ZHRK claimed that it assists its clients by implementing reporting systems and procedures to increase visibility into the critical operations of medical care, installing systems to automate manual recording to increase efficiency and reduce the occurrence of errors, and establishing key performance assessments against benchmarks.
Wenzhong Qin, CFO of BioPharm, said: “With the acquisition of ZHRK, BioPharm Asia will be well-positioned to expand the services it provides to hospitals which currently acquire medical products from BioPharm’s distribution segment. ZHRK’s expertise also enables BioPharm Asia to potentially acquire privately owned medical care facilities. With the addition of the capability, BioPharm Asia will assist in upgrading the quality of China’s medical services, thus creating a promising new profit source for the company.”
BioPharm expects to complete the acquisition of ZHRK by early July, 2010.