Sinopharm Group, the mainland's largest drug distributor, says it plans to help drug and healthcare products importer Kingworld Medicines expand its distribution network and find acquisition targets after taking a stake in Kingworld in September. Sinopharm Capital Management, the group's investment platform, signed an agreement with Kingworld yesterday to help Kingworld expand its distribution channels to more pharmacies and hospitals. It will also look for acquisition targets for Kingworld, which is seeking to buy e-commerce providers, clinical marketing services providers and upstream manufacturers. Under the agreement, Kingworld will also be able to select pharmaceutical and health care products and medical appliances from Sinopharm's product portfolio. Sinopharm became a strategic investor in Kingworld in September after buying a 9.99 per cent stake from Kingworld chairman Zhao Lisheng and HK$134 million in convertible bonds. "We chose Kingworld as our strategic partner because it has done an excellent job in distribution and marketing of OTC (over-the-counter) medicines. The synergy gained from our cooperation will create a new growth driver for both of us," Sinopharm Capital president Wu Aimin said. Sinopharm Capital has also invested in the e-commerce, Chinese herbal medicine and medical appliances sectors since 2012. Sinopharm Group's share price plunged nearly 6 per cent to HK$27.60 in Hong Kong yesterday, while Kingworld dropped 1.06 per cent to HK$1.86. Sinopharm Group, with annual revenue of more than 160 billion yuan (HK$199.5 billion), has been facing challenges in recent years owing to the central government's crackdown on corruption in the pharmaceutical industry and the reform of public hospitals, which started last year.