Friday, 23 October 2009

UK and China - GSK Invests in Joint Venture to Produce Paediatric Vaccines in China

GlaxoSmithKline has entered into a partnership with Jiangsu Walvax Biotech Company to develop and manufacture paediatric vaccines for use in China.

As part of the deal, GSK will provide the technology for its MMR jab Priorix to Walvax to enable local production and distribution of the vaccine. A manufacturing plant will built specifically so that the joint venture can eventually supply China’s public vaccine market.

The collaboration will be reached with a total investment of £41.2 million, of which GSK is providing £20.1 million to begin with and a further £7.3 million in 2015. Meanwhile, Walvax is investing £13.8 million into the partnership. From these investments, GSK has an equity share of 65% and Walvax 35%, although the companies noted that this can be revised in the future if necessary.

Further reading - Detailed reviews of the pharmaceutical markets in both the UK and China, including more information on pharmaceutical companies, are available from Espicom: The Pharmaceutical Market: United Kingdom (published September 2009) and The Pharmaceutical Market: China (published September 2009)

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