Chinese health care companies are on a shopping spree, with over $3.9 billion overseas acquisitions in the fields of pharmaceutical, biotechnology, and health care so far, according to data compiled by Bloomberg.

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The initiative is driven by the urgent need of these firms to diversify their assets amid the economic slowdown and the government's push to boost China-made brands. Success overseas would permit them to extend their portfolios, discover potential areas of growth, and gain access to developed markets with high standards.

In May, China's Creat Group Corp. agreed to buy UK-based human blood plasma products maker Bio Products Laboratory Ltd. for $1.2 billion, making it the biggest international pharma acquisition made by a Chinese company.

In the same month, Shanghai Fosun Pharmaceutical Group Co. also made an offer to acquire 96 percent of Indian generic injectables' manufacturer Gland Pharma Ltd.

The shopping spree is unlikely to end, with George Lin, head of Asia consumer, retail and healthcare investment banking at Bank of America Corp saying that a number of Chinese firms investing in the pharmaceutical industry are close from securing the US and Europe's approvals.

"If those are approved, then the Chinese are likely to be much more interested in pursuing overseas targets in similar areas that have a strategic alignment."

However, Chinese companies still lag far behind in other sectors in terms of the international acquisition size. 

According to John Wong, chairman of Greater China at Boston Consulting Group, Chinese firms tend to seek firms with sales between $100 million and $300 million and valued between $300 million to over $1 billion. Furthermore, they also go for businesses that align with their current areas of expertise.

He, however, cautioned Chinese companies rushing to get a foothold overseas to be careful about buying a company "that has a weak portfolio and the local management team disappears after the sale. Then the Chinese company is left with a declining asset."

Other than Chinese firms' lack of expertise, Frank Le Deu, a senior partner at McKinsey & Co., noted that the healthcare sector is highly regulated and can be a sensitive industry where foreign governments might intervene if Chinese firms attempt to make huge acquisitions.

TagsPharmaceutical companies, China shopping spree, healthcare sector