The FINANCIAL — Pfizer and Zhejiang Hisun Pharmaceutical, a leading pharmaceutical company in China, today signed a framework agreement, advancing their previously announced memorandum of understanding to establish a joint venture to develop, manufacture and commercialize off-patent pharmaceutical products in China and global markets.
The framework agreement builds upon the MOU, and is an important milestone in the formation of a joint venture between the two companies. According to Pfizer, this potential partnership would aim to strengthen the ability of both companies to reach more patients with high-quality medicines in the branded generics arena.
The agreement signing took place at the Sino-US Economy & Trade Forum held in Los Angeles during the U.S. visit of Mr. Xi Jinping, the Vice President of China. Mr. Xi Jinping, Mr. John Bryson, U.S. Secretary of Commerce, and other senior officials from the Chinese and U.S. governments attended the event. Mr. Bai Hua, Chairman of Hisun Pharmaceutical, and Dr. Xiaobing Wu, Country Manager of Pfizer China, participated in the signing ceremony.
According to the framework agreement, the potential joint venture will be named “Hisun Pfizer Pharmaceutical Co., Ltd.” Hisun will own 51% and Pfizer will own 49%, and the aggregate investment and registered capital will be USD 295 million and USD 250 million respectively. Both parties could contribute selected existing products, manufacturing sites, cash and other relevant assets after the joint venture is formed.
The potential joint venture is subject to the satisfaction of certain closing conditions, including approval of relevant government authorities in China.
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