China market is the next big target for Pfizer as the pharmaceutical giant inks a new deal of a joint venture with a Chinese partner, Zhejiang Hisun Pharmaceutical during a ceremonial document-signing in Los Angeles. Desiring to tap into one of the world’s fastest growing pharma markets, other drugmakers in China may soon be next partner for Pfizer too.
In a statement issued by Pfizer, the JV dubbed Hisun Pfizer Pharmaceutical, will be 51% owned by the Chinese company. Zhejiang Hisun while Pfizer will own the remaining 49%. Zhejiang will put in $295 million while Pfizer will contribute $250 million. Both companies will contribute products, manufacturing infrastructure, and other assets.
Allying with Hisun which specializes in active pharmaceutical ingredients will give Pfizer an edge as “there is a shortage of top-quality API manufacturers in China,” Barclays analyst Jason Mann told Reuters. He added that Chinese regulations and tax law favor drugs manufactured in China and thus setting up a pipeline of Chinese API can help Pfizer penetrate the Chinese market in a more cost-effective way.
Pfizer will next explore business development opportunities, including partnerships with local companies that allow them to successfully expand into the generics segment of the market. Off-patent drugs the company is earmarking for the Chinese market remains confidential.
Interested to find out about this new partnership of Pfizer?
Senior level representatives from Pfizer will be dropping by at the BioPharma Asia Convention 2012 to address on various issues in biopharmaceutical industry. Mr Salomon Azoulay, Senior Vice President, Medical & Development, Emerging Markets/established products business units, USA will share his views on "Pfizer's global clinical development strategy with collaborations in Asian powerhouses India & China" at Pharma Trials World Asia 2012. Mr Pierre Nader, Director of Operational Improvement & Excellence, Lean Six Sigma Master BlackBelt and Mr Kim Sandell, Director, Operations Management & Operational Excellence meanwhile will speak on "Applying lean to the overall value chain of a continuous process organisation" and "Increasing throughput through collaboration and capacity management" respectively at Pharma Manufacturing World Asia 2012.
See you at March this year!