Pfizer pencils JV deal with Hisun for low-cost generics in China; out-licenses drug to Clovis

The world’s largest pharma company, USA-based Pfizer (NYSE: PFE), has entered into a memorandum of understanding with leading Chinese drugmaker and Zhejiang Hisun Pharmaceuticals (SSE: 600267), on their intention to establish a joint venture. This potential partnership would aim to strengthen the ability of both companies to reach more patients with high-quality and low-cost medicines in the branded generics arena.

Under the MOU, the two companies will explore a potential business collaboration focused on manufacturing cooperation to deliver high-quality medicines, broader commercialization of medicines through a local and global sales and marketing infrastructure and research and development of off-patent medicines. Both parties could contribute select existing products and other relevant assets and capabilities to provide a solid platform for this potential joint venture. According to a stock market filing by the Chinese firm, Pfizer and Hisan have agreed to contribute around $295 million to the deal.

Milestone in Pfizer’s commitment to China market