Fosun Pharma Offers Window to China Healthcare Reform

Those of you looking to catch a piece of China’s ongoing healthcare reform might want to examine the upcoming $1 billion Hong Kong IPO for China-listed Fosun Pharmaceutical (Shanghai: 600196). (English article; Chinese release) I’ll be the first to admit I don’t know too much about this company, but its diversified nature, coupled with parent Fosun’s reputation for being a savvy, entrepreneurial investor make this one look like a good bet as China embarks on a multibillion-dollar national healthcare overhaul expected to last for years. Fosun Pharma’s profit already grew around 70 percent last year, and that was just as healthcare reform was getting started. This company could also offer a more entrepreneurial play into the space, in contrast to more traditional firms like Sinopharm (HKEx: 1099), China’s biggest drug distributor, which come from a state-run background.