The China-based e-commerce giant, Alibaba, has confirmed it is set to make a substantial investment of $121mn in pharmaceutical chain, Guizhou Ensure Chain Pharmacy, China Money Network reports.
Alibaba’s health unit, Alibaba Health Information Technology, will purchase a 14.54% share in the pharmaceutical firm in Guizhou for $61.6mn, in addition to an additional $59mn to increase its capital.
The company provides technology and services which are related to tracking, pharmaceutical e-commerce and intelligent medicine.
According to the security filing with the Hong Kong Exchange last week, it is expected that Alibaba Health will eventually maintain a 25% stake in the company.
The deal was announced after Alibaba Health confirmed plans to invest $80mn into Shandong-based pharmaceutical chain, Shuyu Civilian Pharmacy, in June.
The firm expects the purchase will enable them to “explore and expand new retail models for pharmacies” in the region.
After being established in 1993, Guizhou Ensure Chain Pharmacy now operates more than 1,000 pharmacy stores in China with a recorded net profit of $9.6mn as of 2017.
It is anticipated that the move will enable Alibaba Heath to increase the accessibility and make health care more affordable for an expected 1 billion people.