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Fosun Pharma unit, BioNTech to form joint venture to make up to 1 billion doses of Covid-19 vaccine in China
- The Fosun unit will contribute up to US$100 million of assets including cash and a manufacturing facility, while BioNTech will chip in the licence and know-how
- Fosun is BioNTech’s exclusive partner for the vaccine in mainland China, Hong Kong, Taiwan and Macau
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A unit of Shanghai Fosun Pharmaceutical has agreed to form a US$200 million joint venture with German partner BioNTech to build a plant in China capable of supplying up to 1 billion doses of coronavirus vaccine a year.
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Shanghai Fosun Pharmaceutical Industry Development will contribute up to US$100 million of assets including cash and a manufacturing facility, while BioNTech will chip in the licence and know-how to produce the vaccine of the same value. Each party will own half of the venture.
“Fosun Pharmaceutical Industry shall provide a manufacturing facility, which has the potential capacity of producing up to one billion doses of coronavirus vaccine product per annum, and shall inject the manufacturing facility into the joint venture,” Fosun Pharmaceutical said in a filing to Hong Kong’s bourse late on Sunday.
Fosun will also provide loans to the planned 15-year joint venture – to be incorporated in Shanghai – of up to €150 million (US$182.4 million), besides arranging other credit facilities.
The announcement of the agreement comes as governments wrangle over whether to waive patents on Covid-19 vaccines, which will affect the value of manufacturing licences.
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Germany has opposed the US-backed proposal first initiated by India and South Africa last fall, saying protection of intellectual property is key to encouraging innovation and should not be taken away.
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