Pfizer Inc. PFE is boosting its presence in China by setting up a state-of-the-art Global Biotechnology Center in the Hangzhou Economic Development Area (HEDA). The company will be investing about $350 million in the facility which will be Pfizer’s third biotechnology center globally and the first in Asia.
Pfizer intends to manufacture high-quality, affordable biosimilar medicines at the Center to cater to patients in China as well as across the world. The Center is scheduled to be completed in 2018. China remains an attractive investment area for several companies given the rising incidence of non-communicable diseases and an aging population.
We remind investors that Pfizer’s biosimilar portfolio was significantly enhanced with the acquisition of Hospira last year. Earlier this year, the company’s biosimilar version of Remicade gained FDA approval while key programs include biosimilar versions of Herceptin, Rituxan, Avastin, and Humira.
The biosimilars market represents huge commercial potential. On its first quarter call, Pfizer had mentioned that approximately $100 billion of currently patented branded biologics are expected to lose patent protection in the next 5 – 10 years. Moreover, the company said that the global market for biosimilars is expected to grow from around $1 billion annually in 2013 to $17 billion – $20 billion in 2020.
Pfizer is a Zacks Rank #1 (Strong Buy) stock. Other well-ranked large cap pharma stocks include Bristol-Myers Squibb Company BMY, Johnson & Johnson JNJ and Bayer AG BAYRY.
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