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TMFHelical (99.13)

Cardinal - Now a China Play

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November 30, 2010 – Comments (0) | RELATED TICKERS: CAH , PPDI.DL , MCK

This may well become the Cardinal Health blog - LOL.  Again this company has made an acquisition that has me grinning.  This time it is Zuellig Pharma of China, a major distributor in that country. 

Last year, I recall that while reading a PWC report on Investing in China's Pharmaceutical Industry, thinking that the way I would most like to invest in this market as an individual would be via infrastructure / supply chain i.e. a company similar to AmerisourceBergen, McKesson, or Cardinal.  And now it seems I have, by proxy, done just that via Cardinal.  As Stephen Simpson points out in his Investopedia commentary on Cardinal's recent acquisitions, the company is paying up for this opportunity, but it may well be worth the growth opportunity.  I expect it will be.  I can now count Cardinal and CRO Pharmaceutical Products Development Inc. as two US holdings of mine which are also partial 'growth in China' plays as well.

Interestingly, Cardinal isn't the only player in this space looking at acquisitions lately.  As a blog from Scientia Advisors points out, McKesson's recent play for US Oncology could be a strategic game changer.  Stable industries looking for promising growth opportunities is an area where I'm currently comfortable committing investment dollars.

 

TMFHelical

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