Pfizer and Hisun to ally on generic medicine development

Pfizer is to form a new joint venture with Zhejiang Hisun Pharmaceutical (Hisun) that will focus on the development of new generic therapies.

The companies have signed a framework agreement that builds on their previous memorandum of understanding to jointly develop, manufacture and commercialise off-patent drugs for both the Chinese and global markets.

According to the new agreement, the potential joint venture will be called Hisun Pfizer Pharmaceutical and will be 49 percent owned by Pfizer, with Hisun commanding the majority stake.

Aggregate investment and registered capital will be $295 million and $250 million (186.58 million pounds and 158.11 million pounds) respectively, with both companies to contribute manufacturing capabilities, cash, existing products and relevant assets.

The deal remains subject to regulatory approval, but would greatly enhance the capabilities of the two organisations in the field of branded generics.

Last month, Pfizer published its financial results for 2011, reporting a slight year-on-year increase in revenue of one percent.