HQ Times
November 8, 2024: Pfizer under activist investor pressure is busy turning its performance around and has decided to expand its presence in China.
Pfizer China President Jean-Christophe Pointeau said the company will invest $1 billion in the country over the next five years. The details of the investment are not available yet. This investment aims to enhance its presence in the world’s second-largest pharmaceutical market, which has been growing rapidly due to increasing drug spending and favorable regulatory reforms.
So far, Pfizer has invested over 1.5 billion USD in China. Pfizer has established one state-of-the-art manufacturing facility and 2 R&D centers in Shanghai Zhangjiang High-Tech Park and Wuhan Biolake – the national biological industrial base.
Pointeau, told local media ‘Pfizer China 2030 Strategy’ key pillars include faster commercialization of innovative drugs and working with local biotechs.
Recent investments
Pfizer invested $200 million in CStone Pharmaceuticals, acquiring a 9.9% stake. This partnership grants Pfizer exclusive rights to commercialize CStone’s cancer immunotherapy, sugemalimab, in mainland China and collaborate on other cancer drugs.
Pfizer also announced a collaboration with LianBio, committing up to $70 million for in-licensing and co-developing drugs aimed at the Chinese market. This partnership allows Pfizer first rights to negotiate commercialization for any jointly developed products
The pharmaceutical company has entered into an agreement with Beijing Tianguangshi Biotechnology and Kangyuan Bochuang Biotechnology on treatments for multiple myeloma. It’s the first local biotech partnership in mainland China since Pfizer Ignite — a developmental and clinical service program — was launched in the country, according to a report.
Oncology and obesity are a big part of Pfizer’s plans to move beyond its Covid-19 success, and executives have touted China’s market opportunities in both spaces over the last year, The company has operated in China for more than 30 years, and repeatedly cites the country as a key market.
China advantage for Pfizer
The investment will facilitate the growth of established products, particularly those that have lost patent protection. By leveraging its strong portfolio, Pfizer can generate additional revenue streams in a rapidly expanding market.
The investment aligns with Pfizer’s strategy of partnering with local biotech companies, which can provide valuable insights and access to innovative drug development. This approach not only enhances Pfizer’s product offerings but also helps control costs while navigating the complexities of the Chinese market.
The expansion is occurring alongside efforts in the U.S. to impose restrictions on biotech companies operating within the country. The Biosecure Act, which is being advocated by U.S. lawmakers, aims to limit collaboration between U.S. companies and China-based biotech contractors.
