China-based BIMI International Medical Inc. (OTCMKTS: BIMI), a wholesaler of drugs and healthcare products, has announced plans to sell its wholly-owned distribution subsidiary, Chongqing Zhuoda Pharmaceutical Co., Ltd. The 100% equity stake in Zhuoda will be sold to three individuals in China who had previously sold the company to BIMI. As part of the deal, the 440,000 BIMI shares previously paid to the purchasers to acquire Zhuoda will be returned to BIMI. The transaction is expected to close in Q4 2022.
Rationale Behind the Sale
In a press release, BIMI described Zhuoda as an underperforming asset. The sale will allow the company to focus on enhancing its core operations and strategic initiatives. BIMI is aiming to expand its US operations and is targeting strategic acquisitions in that market to fuel further growth.
Company Background and Business Lines
Headquartered in Chongqing and founded in 2000, BIMI’s business lines cover wholesale pharmaceuticals, wholesale medical devices, medical services, and retail pharmacies. The company supplies prescription and over-the-counter (OTC) medicines, traditional Chinese medicines (TCMs), healthcare supplies, and medical consumables to clients including clinics and hospitals. BIMI also operates directly-owned and authorized retail stores.
Future Outlook
The divestiture of Zhuoda is part of BIMI’s broader strategy to streamline its operations and focus on high-growth opportunities, particularly in the US market. This move underscores the company’s commitment to optimizing its business portfolio and pursuing strategic expansion.-Fineline Info & Tech
