Pfizer to quit making biosimilar in China; sells out to WuXi

China’s WuXi Biologics (HK: 2269) has entered into an equity agreement with US pharma giant Pfizer’s (NYSE: PFE) China subsidiary to acquire its state-of-the-art biologics manufacturing facilities, as well as its labor force in Hangzhou, China.

The transaction is expected to close in the first half of 2021, which will immediately boost the commercial drug substance (DS) and drug product (DP) capacities for WuXi Biologics to address surging manufacturing demands.

Both Pfizer and WuXi declined to disclose the deal value, or the products to be made after the transaction closes. However, back in 2016, Pfizer announced that it planned to invest about $350 million in the Hangzhou facility.