China-based Chongqing Zhifei Biological Co., Ltd (SHE: 300122) has announced the renewal of a supply, distribution, and co-promotion agreement with Merck Sharp & Dohme (MSD, NYSE: MRK) for the US firm’s vaccine products. Under the renewed agreement, Zhifei aims to secure the supply of MSD’s human papillomavirus (HPV) and pentavalent rotavirus vaccines, with MSD committing to deliver at least RMB 100 billion (USD 14.8 billion) worth of vaccines.
Zhifei and MSD Partnership
Zhifei first partnered with MSD in April 2011, taking responsibility for the firm’s vaccine sales in mainland China. Since then, MSD has introduced several high-quality vaccines to the market, including the Gardasil four-valent and nine-valent HPV vaccines and a five-valent rotavirus vaccine. In September 2012, the two firms signed a deal for four-valent Gardasil, with MSD supplying the product and Zhifei holding exclusive promotion rights in mainland China upon marketing approval. Gardasil gained market approval in China in May 2017, followed by Gardasil-9 one year later.
Previous Agreements and Future Outlook
In November 2018, the two sides adjusted the basic procurement volume for cervical cancer vaccines, with a deal worth an aggregate RMB 18.02 billion (USD 2.668 billion). This included RMB 5.507 billion (USD 815.3 million) in vaccines delivered in 2019, RMB 8.33 billion (USD 1.233 billion) in 2020, and RMB 4.165 billion (USD 616.63 million) in 2021. The latest deal underscores the continued strong demand for HPV and other vaccines in China, positioning Zhifei as a key player in the domestic vaccine market.-Fineline Info & Tech
