fosun pharma intends to purchase preferred stock of guahao.com, accelerating the strategic deployment of “internet plus”
on 30 november 2015, regal gesture limited, a wholly-owned subsidiary of china’s leading pharmaceutical and healthcare company shanghai fosun pharmaceuticals company limited (“fosun pharma” or the “company”), and other purchasers have entered into a series of documents including series e preferred stock subscription agreement. regal gesture limited plans to acquire 39,669,253 shares of preferred stock of guahao.com at the price of usd1.638548588/ share, with the total subscription fee reaching approximately usd65 million (hereafter referred to as the “transaction”).
upon the completion of the transaction, fosun pharma, through its wholly-owned subsidiaries fosun industrial company limited and regal gesture limited, will collectively hold 89,103,246 shares in guahao.com (among which, 14,647,109 shares of ordinary stock, 34,786,884 shares of series d preferred stock, and 39,669,253 shares of series e preferred stock), accounting for 9.73% of guahao.com’s total shares outstanding.
established in 2006, guahao.com is a “platform for medical and health counselling across the nation” under the guidelines of national health and family planning commission of the prc (the former ministry of health). currently, guahao.com has become a world’s leading mobile medical service platform and the first choice of domestic internet-based hospital appointment-booking platform which grows the fastest and the greatest. in 2014, 160 million people made appointment requests through guahao.com. as of 30 september 2015, guahao.com’s services covered 25 provinces with 77 million users, connecting with approximately 190,000 doctors from over 1,600 high-grade hospitals.
the management of fosun pharma expressed that, the completion of the transaction will contribute to the more in-depth cooperation and coordination between fosun pharma together with its subsidiaries (collectively the “group”) and guahao.com in the level of medical and pharmaceutical business, accelerate the group’s development strategy of “internet plus”, and push forward innovation in businesses, which mainly include: in respect to the sector of medical service, it will help realize the seamless connection of the group’s online and offline services, further form a closed-loop o2o platform, enrich service methods for medical institutions, expand service channels, improve service quality, optimize patient’s experience, and improve the performance and brand awareness of medical institutions through internet-based marketing; in respect to the sector of pharmaceutical distribution, it will help make the best of the advantages of the group’s drug supply and distribution as well as both parties’ online platforms, so as to further optimize drug supply system and expand drug distribution channels.
fosun pharma entered into a strategic cooperation agreement with guahao.com in may 2015. according to the agreement, both parties will make the best of their superior recourses, and carry out in-depth collaboration in aspects including technology, platform, market and media, so as to establish a tightly integrated o2o alignment.
fosun pharma established the internet business development department in 2015, focusing on the combination of internet-based medical business innovation and its current business. chairman of fosun pharma chen qiyu stated that the cooperation with guahao.com complies with the nation’s healthcare reform and the development trend of internet plus, meeting the demand of the company’s internet business strategic layout and development. the development of “insurance, medicals and pharmaceuticals” industry chain and the launch of new model of internet-based medical business will improve patients’ service experience, genuinely realize the patient- and doctor-oriented goal, and provide better products and services for the society.