Tuesday, May 21, 2013

US based Global MNC Pharma eying growth in China, the Joint Venture way

In the last few years, we have seen many large pharma MNC getting into a joint venture arrangement with Chinese counter parts, which signifies the growing potential of China market. MNC's are looking at China more from a growth perspective than merely leveraging its low cost manufacturing base. 


The joint venture of Hisun with Pfizer was a major stride for a Chinese company. The attractiveness of China market and Hisun's local strength  could help it negotiate a controlling stake in the joint venture with Pfizer, the world's largest drug-maker by sales. Hisun has a 51 percent share in Hisun-Pfizer Pharmaceuticals Co, with a total investment of $295 million . 

The joint venture focuses on the manufacturing and commercialization of branded generics, or high-quality and low-price off-patent medicines, in China and around the world. Hisun contributed a strong portfolio - 75 products, wide market reach in China and expertise in the production and commercialization of generics, while Pfizer offers, in addition to eight products, its research and development, marketing and manufacturing capabilities.

The operational revenue of the joint venture is expected to exceed $2 billion yuan. The establishment of the joint venture will help transform Hisun into a branded generics company from an active pharmaceutical ingredients manufacturer. Pfizer should also be able to strengthen its presence in China.

 

Amgen and Zhejiang Beta Pharma Co., Ltd. recently announced that the companies have signed an agreement to form a joint venture to commercialize Amgen's Vectibix® (panitumumab) in the Chinese market. Together, Amgen and Zhejiang Beta Pharma aim to quickly and efficiently deliver Vectibix to patients in China.

The joint venture will benefit from Zhejiang Beta Pharma's strong expertise in the development and commercialization of molecular targeted therapies as well as Zhejiang Beta Pharma's industry-leading oncology sales network in China. Zhejiang Beta Pharma's China capabilities are complementary to Amgen's global expertise in the development and manufacturing of human therapeutics.

According to the agreement, the new joint venture will be named Amgen-Beta Pharmaceuticals Co., Ltd. Zhejiang Beta Pharma will own 51 percent and Amgen will own the remaining 49 percent interest in the joint venture.
 
 The other notable JV was that of Simcere with world third largest drug maker Merck. The JV would help Merck a low cost manufacturing base in China, and it could leverage the reach of Simcere to expand the sales of its off patent product portfolio.



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