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Pfizer forms branded generics sales alliance in China

Forms joint venture with local company Hisun

Pfizer has teamed up with Chinese pharma company Zhejiang Hisun Pharmaceuticals to sell branded generic medicines in a global deal that will have a particular focus on China.

Named Hisun-Pfizer, the company's joint venture will develop, manufacture and commercialise off-patent drugs, with the two partners looking to capitalise on China's reliance on branded generics, which account for 70 per cent of its domestic pharmaceutical market.

Hisun-Pfizer will be set up through an investment of $295m from the companies, and will have in registered capital of $250m, as set out in an earlier framework agreement. Hisun will own 51 per cent of the venture, while Pfizer will own 49 per cent.

The move offers benefits for both companies, giving Pfizer a stronger presence in an increasingly robust Chinese pharma market, while Hisun is looking to realise its ambition to move from being solely a manufacturer of active pharmaceutical ingredients (API) and boost its global influence.

“This will help us better contribute to the development of the Chinese pharmaceutical industry, advance the drug innovation and manufacturing capabilities of Zhejiang province and China, and lay a solid foundation for Chinese pharmaceutical companies to enter the international market,” said Bai Hua, chair and president of Hisun.

Meanwhile, Xiaobing Wu, country manager of Pfizer China explained how the decision was influenced by ongoing healthcare reforms in the country, which include plans to expand medical insurance coverage, strengthen public health infrastructure and improve rural healthcare services to increase access to newer therapies.

He said: “The joint venture demonstrates Pfizer's commitment to China's ongoing healthcare reforms and is an important milestone for Pfizer's efforts to broaden the reach of its world-class healthcare solutions in China.”

Hisun-Pfizer will have access to a strong portfolio of products from both companies, as well Pfizer's R&D and promotional capabilities.

Production plants for the venture will be based in Fuyang, Zhejiang province, while its management centre will be located in Shanghai. R&D activities will take place at a centre in Hangzhou.

Other companies to increase their presence in the Chinese branded generics market include Eli Lilly, with the US pharma company signing an agreement with China-based Novast Laboratiories in June this year to manufacture generic versions of Lilly's drugs.

13th September 2012

From: Sales

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