Published on : Jun 08, 2015
Alibaba’s founder Jack Ma, is making more investments in China’s healthcare industry.
Ma who co-owns Yungfeng Capital is pushing 880 million yuan into a Beijing’s company that manufactures medical imaging devices named as China Resources Wandong Medical Equipment. According to a company record, Yungfung capital is to spend 200 million yuan to get 5.7 million shares for a 2.5% stake.
Alibaba’s healthcare unit Alijk and Wandong will provide medical imaging services through the internet as well as MRI and CT scans to the company’s online healthcare platform, Yidegu. Jiangsu Yuyue Medical Equipment & Supply Co., and Alijk have signed a 3 year agreement to discover business opportunities in medical resource management and smart medical devices. The agreement was signed by billionaire Wu Guangming the controlling shareholder of the Jiangsu Yuyue Medical Equipment & Supply Co.
China’s medical device market is expected to reach values of $48 billion this year and become second largest globally after U.S. China wants to promote Chinese manufactured medical devices and thereby decrease dependence on imports and reduce escalating medical costs. Alibaba has recently set up a health care related 3 hour delivery service in May, and involved in an online-transaction unit, deal for $2.5 billion related to web based pharmacies in Hong Kong. These deals were a series of moves made by Alibaba in the healthcare business recently.
Guangzhou-based drug maker Baiyunshan well known for its Viagra like product “Golden Spear” and herbal tea brand named Wanglaoji, has been joined by Alibaba in a deal agreement. Alibaba has agreed on investing 500 yuan for a private placement.