Zhifei Biological to Increase HPV Vaccine Procurement from Merck to RMB 18 Billion

Pharmaceutical Network, November 7 – On November 6, according to an announcement by Zhifei Biologicals, the company has signed HPV vaccine-related agreements with MSD Hong Kong, an affiliate of Merck Sharp & Dohme Corp. The agreements further adjust and confirm the comprehensive base purchase volume for the HPV vaccines (cervical cancer vaccines) distributed by Zhifei Biologicals, including the quadrivalent and nonavalent HPV vaccines.

 

Under the new agreement, the base procurement amount for quadrivalent and nonavalent HPV vaccines purchased by Zhifei Biological from 2019 to 2021 has increased from RMB 4.631 billion to RMB 18 billion. This signifies that, starting in 2019, MSD will substantially increase its supply of quadrivalent and nonavalent HPV vaccines to China.

 

Zhifei Biologics, established in 2002 and headquartered in Chongqing, with Jiang Rensheng as its legal representative, is a private biological vaccine enterprise integrating vaccine research and development, manufacturing, distribution, and import and export operations.EnterpriseIn September 2010, Zhifei Biological was listed on the Shenzhen Stock Exchange. Currently, Zhifei Biological has four wholly-owned subsidiaries—Zhifei Lvzhu, Zhifei Longkema, Zhifei Konggang, and Zhirui Investment—and one equity-participating subsidiary.

 

It is understood that, due to policy regulations, overseas vaccine enterprises are only allowed to designate one domesticAgentThe institution centrally distributes imported vaccines. Since 2011, Zhifei Biological has held the exclusive agency rights for MSD’s HPV vaccine in mainland China. Currently, only two pharmaceutical companies worldwide have obtained approval to market cervical cancer vaccines, with MSD being one of them, underscoring its strength in the healthcare industry. To date, MSD has established partnerships in more than 140 countries around the world, providing them with prescription drugs, vaccines, biologics, and animalDietary Supplementsinnovative healthcare solutions, including.

 

This HPV vaccine basicProcurementThe increase in amount is also closely related to the huge market demand. Cervical cancer is the second largest after breast cancerFemaleFatal cancer. According to estimates by EvaluatePharma, 530,000 women worldwide are diagnosed with cervical cancer each year, and 270,000 die from the disease. China currently has 100,000 cervical cancer patients, accounting for one-fifth of the global total.

 

On the supply side, it was not until 2016, when GlaxoSmithKline’s bivalent vaccine Cervarix received marketing approval from the China Food and Drug Administration (CFDA), that mainland China had its first vaccine for the prevention of HPV infection. In May 2017, Merck Sharp & Dohme’s quadrivalent HPV vaccine Gardasil was approved for launch in mainland China, and subsequently won bids and was administered in 26 regions across the country. In April 2018, the nonavalent vaccine was approved for marketing in mainland China. Thus, all HPV vaccine varieties already marketed and used globally have entered the Chinese market.

 

However, the number of vaccines currently approved in China still falls far short of market demand. According to a previous report by the Shanghai Securities News, taking the nine-valent HPV vaccine as an example, the current approved supply can only meet the vaccination needs of 100,000 people, indicating a significant market gap. The recent agreement between Chongqing Zhifei Biological Products Co., Ltd. and MSD to expand procurement quotas will undoubtedly alleviate this tight supply-demand situation.

 

In addition to HPV vaccines, Zhifei Biological’s 2017 annual report disclosed that it also distributed MSD’s 23-valent pneumococcal vaccine and inactivated hepatitis A vaccine. The company’s primary revenue stream derives from the sales and promotion of Category II vaccines, encompassing both self-developed vaccines and imported vaccines under distribution agreements. In 2017, total revenue from distributed products reached RMB 274 million, representing a year-on-year increase of 9,231.67%.