Pfizer Inc. (NYSE: PFE) and Zhejiang Hisun Pharmaceuticals (SSE stock code 600267), a leading pharmaceutical company in China, jointly announced the signing of a memorandum of understanding (MOU) 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.
"Today's announcement demonstrates Pfizer's commitment to China's ongoing healthcare reforms," said David Simmons, President and General Manager, Emerging Markets and Established Products of Pfizer Inc. "The potential joint venture would be an important milestone for Pfizer's efforts to broaden the reach of its world-class healthcare solutions in China, and would also help support Chinese industry."
"Collaborating with the world's leading pharmaceutical companies to form potential joint ventures is a strategy being adopted by Hisun," stated Hua Bai, CEO and President of Hisun Pharmaceuticals. "With the combination of Hisun's strategic vision and Pfizer's global resources, we can better perform our roles and obligations to support the development of China's pharmaceutical industry."
Off-patent medicines, including branded generics, represent one of the fastest growth segments in the global pharmaceutical market. This is especially true in emerging markets, where costs and access are primary drivers of off-patent medicine growth. In China, branded generics account for 60% of the domestic market. With a population exceeding 1.3 billion and rapidly increasing urbanization rates, the nation is expected to become the world's second-largest pharmaceutical market by 2015. Providing high-quality, accessible and affordable health care to people of all walks of life has become a primary objective of Chinese healthcare reforms.
About Zhejiang Hisun Pharmaceuticals
Founded in 1956, the mission for Zhejiang HISUN Pharmaceuticals Co., Ltd. (stock code 600267) hereinafter called "HISUN") is one of "To be persistent in pharmaceutical innovation for humans' well-being". The company's vision is to become "a widely respected global pharmaceutical provider". It focuses on the integration of pharmaceutical research and development (R&D) with production resources in order to provide its global customers with outstanding products and services. To date, over 40 of the company's products have passed certification by the FDA (U.S.), EDQM (EU), TGA (Australia), KFDA(Korea), etc., and are sold to more than 30 countries worldwide.
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