After the completed acquisition deal with Anacor Pharmaceuticals, Pfizer announced the $350 million investment for a biotechnology plant in eastern China amid the economic concerns and medicine price hike.
Under the contract, the state-of-the art Global Biotechnology Center (GBC) will be situated in the eastern Hangzhou City and expected to be done in 2018. A groundbreaking ceremony will be held at the Hangzhou Economic Development Area (HEDA) in China.
John Young, Group President, Pfizer Essential Health, said 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
The American pharmaceutical company wanted the biosimilar products to be available in the market soon. Approximately $185 billion was expected to tap the healthcare market of China and widen the firms market influence in Asia.
Based on the statement released by the company recently, the products from the new biotech center will be more on treating public health concerns. Biologics, the genetically-engineered proteins designed to inhibit certain components of the immune system, are currently mishandled. The said medicine covered around 4 percent of the drugs prescribed in China.
Pfizer believed that current China health care reform will result into the expansion of China’s pharmaceutical industry and that the local production of high-quality, affordable biosimilar medicines will have the potential to significantly improve the lives of patients not only in China but across the world.
Mr. Young added that they 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(s) in health care and R&D.
Apart from Pfizer other pharmaceutical companies have been expanding their respective facilities in the mainland China. Merck &Co launched its new research development center in Beijing while Novartis introduced its new campus worth $1 billion mainly focused on lung, liver and gastric cancers in Shanghai.
Foreign drug makers have been dealing with a strict approval process for their new medicines in China. However, the authorities have pledged to address the problem and to let the much needed drugs and therapies in the country.
Pfizer’s Weak Performance
Shares of Pfizer Incorporated traded lower to $33.80, down by 0.50 percent with a market capitalization of 201.32 billion. The shares went 0.35 percent lower than it was a year ago. It has a price earnings ratio of 27.7 and a dividend yield of 3.55 percent.
The New York based pharmaceutical company has a 52-week high of $36.46 and a 52-week low of $28.25. It has an average trading volume of 29,847,726 and its trading volume the previous day was at 44,004,898.
For the last month, the shares of the company has slumped by -1.83 percent, while in the previous week it stayed down by -2.03 percent. Pfizer Incorporated has an outstanding shares of 6064.85 and from its EBITDA stood at 14.84 billion for the last 12 months.
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