According to a report in the Chinese media, Qihoo 360 Technology (NYSE:QIHU) is entering into the medical e-commerce sector by forming a joint company with a subsidiary of China National Pharmaceutical Group Corporation (Sinopharm). As noted in the linked article, Sinopharm is China’s largest Chinese medical and healthcare group. It offers more than 30,000 medicines and health products, including prescription and non-prescription drugs, personal healthcare products and medical products.
Late in yesterday’s trading session, GeoInvesting alerted its premium members of this news, giving them a chance to get into the stock this morning and ride a multi-dollar gain.
Effort to Establish the Most Comprehensive Selection of Drugs
The two parties have come together in order to try and establish the safest online medicine sales platform that can offer the most comprehensive selection of drugs. Sinopharm will provide as much of its resources and infrastructure as it can to the new joint company, which should help fully support its development. In addition, QIHU will assist the construction of the e-commerce transaction platform, ensuring the safety of transactions and offering support for product searches, cloud computing, big data and mobile application development.
We believe that the medical e-commerce sector has big market potential and investors may believe it’s a good strategy for QIHU to enter into this sector in the long run. However, no detailed cooperation agreement terms have been disclosed at this point.
The GeoTeam will keep following the story.
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