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British pharmacist and drug outlet Alliance Boots now has strengthened its presence in the Chinese health care market. After Boots became a shareholder of Guanghzou Pharmaceuticals (market position 6) in 2007, the British company has now also invested in Nanjing Pharmaceutical, number 5 in the pharmaceutical trade for China. 

Leading up to this agreement, Boots CEO Stefano Pessina had been in negotiations for over a year with the Chinese government, who have strict regulations on foreign capital, particularly in this sector. China is the third largest pharmaceutical market worldwide.

Nanjing, which also has its own pharmacy chain Nanjing Unionpharma, continued its sales growth with £2 billion recorded last year, while employing 8,200 people in 12 locations. 75% of revenues in the wholesale sector came form sales to hospitals medical centres.

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