Pfizer Inc. said that it will invest about $350 million to build a global biotechnology center in China. The facility – Pfizer’s first biotechnology center in Asia – will be built in the Hangzhou Economic Development Area in China. The Pfizer Global Biotechnology Center is expected to be completed in 2018, the company said in a statement.
Pfizer said that it will work closely with Chinese regulators to bring the drugs products produced at the Hangzhou facility to market as soon as possible. “We believe that the Pfizer Global Biotechnology Center in Hangzhou will help support China’s aim to increase the complexity and value of its manufacturing sector by 2025, and contribute to building a truly innovative and vibrant biopharmaceutical industry,” stated John Young, group president for Pfizer essential health.
The new biotechnology center will provide biological medicines for patients in China. The facility will also house Pfizer China’s biosimilars and biologics quality, technical service, logistics and engineering divisions.
China’s Healthcare Market
China’s healthcare market is estimated to be worth around $185 billion by 2018, according to IMS Health.
“We are encouraged by a series of important reforms introduced by Chinese government that will further stimulate the industry to meet emerging health challenges, such as the rising incidence of non-communicable diseases and an aging population; as well as attract both domestic and foreign investment in healthcare and R&D,” Mr. Young said.
According to Reuters data, Chinese healthcare merger and acquisition (M&A) activity jumped to $54 billion in 2015 from $18.8 billion the previous year. These figures exclude joint ventures and licensing agreements. In 2016, M&A deals have reached a total value of $9 billion.
Pfizer Acquires Anacor
On Monday, Pfizer Inc. announced that it completed the process of acquiring Anacor Pharmaceuticals. The firm said that the transaction terms provided each outstanding share of Anacor to be converted into the right to get $99.25 net in cash, i.e. without any interest but subject to required withholding of taxes.
The tender offer to acquire Anacor shares expired on June 23. Computershare Trust, the depositary and paying agent, received 39.306 million shares of Anacor as validly tendered ones. The firm indicated that all the conditions of the offer were satisfied and on June 24, the drug firm and its subsidiary, Quattro Merger Sub, accepted the payment. They would pay for those shares that were validly tendered and not withdrawn.
Last year, Pfizer agreed to acquire Allergan in a deal valued at $160 billion. The inversion deal was blocked by the US Treasury Department, which announced reforms making it nearly impossible for US companies to invert successfully. However, the firm maintained that inverting wasn’t the motive for the pursuit for Allergan. The acquisition deal was signed by the company to get its hands on Allergan’s high growth assets, which would boost the acquirer’s growth rates. After the termination of the deal, the firm announced it would keep looking for high growth assets. Moreover, the firm announced that it would be evaluating its plans to split into two separate businesses.
Shares of Pfizer Inc. have gained 12.37% during the last three months, and 3.21% year-to-date.