China-based Chongqing Zhifei Biological Co., Ltd. (SHE: 300122) has entered into a sole distribution and co-promotion agreement with UK pharmaceutical giant GlaxoSmithKline (GSK, NYSE: GSK) for its shingles vaccine, Shingrix (recombinant zoster vaccine; RZV). This partnership marks a significant step in enhancing the availability of Shingrix in the Chinese market.
Three-Year Agreement with Significant Financial Commitment
The agreement spans an initial three years, during which GSK will supply Shingrix to Zhifei for marketing, promotion, and distribution throughout mainland China. GSK will also provide ongoing marketing and promotional support. Under the terms of the deal, Zhifei commits to purchasing a minimum of RMB 3.44 billion (approximately USD 478 million) in the first year, RMB 6.88 billion (about USD 956 million) in the second year, and RMB 10.32 billion (around USD 1.43 billion) in the third year. This brings the cumulative value of the agreement to an impressive USD 2.86 billion.
Future Collaboration on RSV Vaccines
In addition to the Shingrix agreement, Zhifei and GSK have preliminarily agreed to collaborate on respiratory syncytial virus (RSV) vaccines. GSK will be prioritized as the exclusive partner for the joint development and commercialization of any RSV vaccine targeting the elderly within the scope of their cooperation.
Expanding Strategic Partnerships
Zhifei has previously signed a similar distribution and promotion agreement with US pharmaceutical company Merck, Sharp & Dohme for the Gardasil family of human papillomavirus (HPV) vaccines. This partnership began with a three-year deal in 2020, which Merck renewed in June 2023 for an additional three years, with Zhifei committing to procure USD 14.8 billion worth of Gardasil vaccines during this period.-Fineline Info & Tech
