Pfizer closes in on $545m China generics deal
pharmafile | February 20, 2012 | News story | Business Services, Manufacturing and Production, Research and Development, Sales and Marketing | China, Hisun, Pfizer, Zhejiang, generics
Pfizer has moved a step closer to a deal with Shanghai-based Zhejiang Hisun Pharmaceutical to develop generic drugs in China.
Signed during the recent Sino-US Economy & Trade Forum in Los Angeles, the companies’ new agreement is subject to government approval in China and builds on an earlier memorandum of understanding between the two.
The potential joint venture would be called Hisun Pfizer Pharmaceutical Co, 51%-owned by Hisun (for a $295 million investment), with Pfizer taking 49% (and putting in $250 million).
The idea will be to develop, manufacture and commercialise off-patent pharma products in China and global markets.
Both firms would have the scope to put up selected existing drugs and manufacturing sites for use in the new entity.
The potential partnership is intended to leverage both companies’ strengths, matching Pfizer’s global capabilities in developing innovative medicines with Shanghai Pharmaceutical’s capabilities and reach in China.
China is a massive emerging market for pharma, but the country has already expressed interest in ensuring that medicines are cost effective.
A deal for generic drugs could prove a smart move for Pfizer, as revenue from these drugs depends on quantity, which China’s 1.33 billion population will be able to give.
In a statement, Pfizer and Hisun called the signing “an important milestone in the formation of a joint venture between the two companies”.
“This potential partnership would aim to strengthen the ability of both companies to reach more patients with high-quality medicines in the branded generics arena,” it added.
The US giant already has a deal with the firm to promote Pfizer’s pneumococcal conjugate vaccine Prevenar, used in China to immunise infants for the prevention of diseases caused by the bacterium Streptococcus pneumonia.
Hisun has previously had co-operation deals with US firm Eli Lilly.
Adam Hill
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