Shanghai Pharma to acquire two drug firms for $570 million

Shanghai Pharmaceuticals Holding (601607.SS) said on Tuesday it will buy two drug companies for 3.8 billion yuan ($570.1 million), in a bid to boost its distribution network across the mainland.

Shanghai Pharmaceuticals said at a news conference it would buy the two firms which are involved in the manufacture and distribution of medicines.

Last month, Shanghai Pharmaceuticals announced its desire to acquire a majority stake in rival China Health System to further expand into northern China.