October 9,Chongqing Zhifei Biological Products Co., Ltd. announced that it has signed the "Exclusive Distribution and Co-Promotion Agreement" with GSK, concerning the products developed and manufactured by GSK.Shingrix (Recombinant Zoster Vaccine) Deepens Collaboration; In additionChongqing Zhifei Biological Products Co., Ltd. will also obtain the priority commercialization rights for GSK's star product, the RSV vaccine.。
Chongqing Zhifei Biological Products Co., Ltd. was previously the exclusive distributor of Merck's HPV vaccine in China, and this time it has "secured" GSK.Has "brought in" two TOP5 vaccine companies. The market also responded positively; as of the time of writing, the share price of Chongqing Zhifei Biological Products Co., Ltd. increasedOver 18%。So, will this collaboration produce a 1+1>2 effect?
Chinese Competitors "On the Rise," GSK Adjusts Commercial Strategy
Under the pressure to cut costs and increase efficiency, the downsizing of GSK's vaccine team began at the end of 2021. The company has two key vaccines in the Chinese market: the bivalent HPV vaccine and the shingles vaccine Shingrix. At the end of 2021, GSK China merged its HPV vaccine and shingles vaccine product lines, along with their sales teams, while laying off some employees and senior management.After divesting its consumer healthcare business in 2022, GSK began to focus on innovative drugs and vaccines. Shingrix (Recombinant Zoster Vaccine) is its fastest-growing and highest-revenue vaccine product.Expected to exceed 4 billion pounds (approximately 35.6 billion yuan) by 2026, and as GSK's second largest market globally, China naturally receives exceptional attention.
End of June 2020,ShingrixLaunched officially in China; in 2021, the first full year of sales, Shingrix, the "only" shingles vaccine available in the Chinese market, generated sales of 600 million yuan in China.By November 2022, tender access work had been achieved across all provinces in China, with rapid implementation in 306 cities, covering more than 6,500 vaccination sites.However, this "exclusive to the Chinese market" situation was broken in the first half of 2023.
In February 2023, Baike Biotech's attenuated live vaccine for herpes zoster was approved in China, entering the domestic market competition. In addition, a number of Chinese vaccine manufacturers, including Green Bamboo Biotech, Ease Biologics, and Maikang Biotech, are also racing to develop their products.
It is reported that each shot of "Shingrix" costs between 1,598 yuan and 1,623 yuan, and two shots are required for each vaccination. In addition, the herpes zoster vaccine is a Category II vaccine that requires self-payment for vaccination.Less affected by medical insurance, with relatively free pricingThe awareness of vaccination among Chinese adults has been consistently low, and the elderly population is especially more price-sensitive.Analysts said that, with the successive marketing of domestically produced vaccines, it will not only further increase the penetration rate of herpes zoster vaccines but also stimulate the release of market demand.At the same time, product prices are also expected to decrease further.。Therefore, in the face of fierce competition from Chinese-produced rivals, GSK has chosen to "join forces with the strong."
New Growth Momentum for Zhifei Biological?
Chongqing Zhifei Biological Products Co., Ltd. is the largest vaccine enterprise in China.Revenue in the first half of 2023 was 24.445 billion yuan (+33%). Interestingly, more than 90% of its revenue comes from agency products, with the largest contribution undoubtedly being from Merck's HPV vaccine.In 2022, among its five agency vaccine products, the growth rate of Merck's HPV vaccine exceeded 50%.According to the agreement it signed with GSK, the term of the agreement starts from October 8, 2023, to the end of 2026. Both partiesThe parties agreed on a minimum purchase amount of 20.64 billion yuan over three years., which means the actual revenue will exceed this figure.
Details of Minimum Purchase Amount Agreement
According to the agreement, GSK will exclusively supply Chongqing Zhifei Biological Products Co., Ltd.Shingrix (Recombinant Zoster Vaccine), and granted Chongqing Zhifei Biological Products Co., Ltd. the rights to market, promote, import, and distribute the product in mainland China (excluding Hong Kong, Macao, and Taiwan).- The initial term of this agreement is three years, with a possible extension of another three years after the initial term ends. Further extensions of the agreement are also possible thereafter.
In addition, the two parties also discussed the R&D and production of GSKRSV VaccineGSK and Chongqing Zhifei Biological Products Co., Ltd. have reached a preliminary cooperation intention, under which GSK will be the exclusive partner for the co-development and commercialization of any RSV vaccine for the elderly within the cooperation region.- Currently, GSK's RSV (Respiratory Syncytial Virus) vaccine for the elderly has been approved in the United States and Japan; it has not yet been approved in China.
What GSK might be eyeing is Chongqing Zhifei Biological Products Co., Ltd.'s channel capabilities in the vaccine field, as well as the rapid promotion ability of its mature team. Its previous successful cooperation with Merck's HPV vaccine may have a certain demonstration effect.After more than two decades of continuous efforts in the Chinese vaccine market, Chongqing Zhifei Biological Products Co., Ltd. has built a professional vaccine direct sales team (with over 3,300 sales personnel) that provides "last mile" services to more than 30,000 grassroots health service points across China.Chongqing Zhifei Biological Products Co., Ltd. needs new drivers for growth. Although in January 2023, the company renewed its agreement with Merck (with a total procurement amount exceeding 101 billion yuan from 2H 2023 to 2026), it still faces a "crisis" in performance growth.On the one hand, the HPV vaccine market in China is becoming increasingly saturated (Merck's exclusivity period may last less than three years); on the other hand, its net profit growth rate has slowed, with a 26% decline in 2022 and only a 14% increase in the first half of 2023.Therefore, perhaps this timeAgentShingrix is its new growth opportunity. But the effect still depends on its performance in 2024.
Vaccines remain the most cost-effective and efficient means of preventing and controlling diseases.
Compared to overseas markets, China's shingles vaccine market is still in its infancy, with low market penetration. However, as China's aging process accelerates, demand is expected to rise. According to Frost & Sullivan, China's shingles vaccine market is projected to grow to 10.8 billion yuan by 2025 in terms of sales revenue.It will reach 28.1 billion yuan by 2030.。
The market space for herpes zoster vaccines in China is broad, and we will continue to pay attention.▲ Brain-Computer Interface + AI, Allowing Paralyzed and Speech-Impaired Patients to "Speak" Again--Featured Recommendations----Industry Community--
Creation is not easy,Share, View, and Like
