GSK signed a contract with Zhifei – China’s biggest vaccine company by revenue – to double the global sales of GSK’s shingles vaccine before 2026.
The UK-based company reported that Zhifei has agreed to purchase Shingrix from GSK, the bestselling shot targeted for older adults.
Zhifei has the option to distribute GSK’s RSV vaccine if it receives approval from regulators in China. Arexy was approved by regulators from the US, EU and UK.
Luke Miels said that the partnership would “substantially increase” the number Chinese adults who will benefit from Shingrix. In China, by 2030 there will be 570 million adults aged 50 and older, but only 1.2 percent of them have been immunized against shingles.
He said that “this partnership is consistent with the focus we have on products that are highly differentiated and durable.”
This is the first agreement of its kind for GSK in China, and will help it increase access to the vaccines from 9,000 to 30,000 vaccination sites. Zhifei has partnered with US Merck (known as MSD outside of the US) to sell millions of dollars worth of vaccines.
The large pharmaceutical companies in China are hoping to expand quickly, targeting a population that is aging and suffering from chronic diseases. The Chinese government is speeding up the approval process for innovative pharmaceutical products, but also putting pressure on the prices of the most popular drugs.
AstraZeneca has built its brand in China, and has a unit with deep roots outside of Beijing and Shanghai. GSK however has faced a more difficult road since the 2015 corruption scandal. The company refused to comment on this matter on Monday.
GSK hopes to double the sales of Shingrix by 2026 to over £4bn. The jab prevents shingles, which is a painful condition caused by the same virus as chickenpox. As people age, their immune systems weaken.
A recent trial on Chinese adults aged over 50 showed that the vaccine was 100 percent effective. No participant who received it developed the disease.