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Nov. 15 (NBD) -- Pfizer Inc.and Zhejiang Hisun Pharmaceuticals (Hisun) announced last Friday that Pfizer has sold its 49% equity share in its joint venture, Hisun-Pfizer Pharmaceuticals Co., Ltd. (HPPC) to Sapphire I (HK) Holdings Limited.

Hisun-Pfizer Pharmaceuticals Co., Ltd. is a joint venture formed by Pfizer and Hisun in 2012 to develop, manufacture and commercialize branded generic pharmaceutical products in China and global markets. 

On Monday evening, Shanghai Stock Exchange (SSE) issued letters to Hisun to seek additional information about the deal. Shen Jinfei, Board Secretary of Hisun, told NBD that they've been preparing required documents.

Shi Lichen, founder of Max Colla (Peking) Science and Technology Ltd., a third-party medical service platform, noted that both domestic and foreign pharmaceutical companies have expected too much from their joint ventures. Many foreign pharmaceutical companies cannot adapt themselves well into the China market. However, the main reason behind their "divorce" is profit, Shi noted.

According to previous disclosure, the joint venture HPPC was suffering in 2015 and 2016 as its pillar product, Tazocin, an injectable containing piperacillin and tazobactam, experienced supply issue caused by a manufacturing upgrade-related suspension at Pfizer’s facility in Italy. Hisun said Pfizer compensated it 10 million U.S. dollars in 2016 and pledged 15 million U.S. dollars more at later time. 

After Pfizer’s equity share transfer, the joint venture will change its name and stop using the trade mark related to "Pfizer" within 12 months. But it will retain its current rights to manufacture, sell and distribute all of HPPC's currently marketed and pipeline products in China. In addition, Pfizer will continue to support a technology transfer process to ensure that the products that had previously been licensed to HPPC by Pfizer, will in the future, be manufactured locally in China. Pfizer will continue to supply certain products to the joint venture for a period of time, after closing, to facilitate a smooth transition.

Although Pfizer and Hisun will maintain a strong and collaborative relationship, the relationship changed fundamentally, added Shi. Pfizer will have more distributors to choose from in the future, he added.

Email: tanyuhan@nbd.com.cn