© Reuters. Pfizer logo in Manhattan, New York
BEIJING (Reuters) – Pfizer Inc (NYSE 🙂 has decided to cease production of biosimilar products in China and to sell a unit in the eastern city of Hangzhou to WuXi Biologics Inc, the US pharmaceutical company announced on Wednesday.
The pharmaceutical industry is increasingly relying on expensive biological drugs, made from living organisms that are harder and more expensive to make than conventional drugs with chemical ingredients, for profits.
"The site should produce three biosimilars for the Chinese market," the company said in a response to Reuters.
"Pfizer has commercially and technically evaluated other products for the site, but none have reached the level of activity for the site's scope."
Neither Pfizer nor WuXi disclosed the transaction value or the products to be manufactured upon completion of the transaction, which is expected in the first half of this year.
WuXi said the deal would enable it to meet rising industry demand for drugs and pharmaceuticals.
The facilities are equipped with bioreactors and can file vials and syringes, the Chinese company said in a statement on the WeChat app.
WuXi also makes vaccines for a COVID-19 shot developed by AstraZeneca (NASDAQ 🙂 PLC and Oxford University to ship to Brazil, but had no immediate comment on whether the plant would produce such substances.
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