Business Development Asia (“BDA”) advised on the external financing of Pfizer’s newly announced animal health joint venture with Jilin Guoyuan Animal Health. Pfizer Animal Health, a business unit of Pfizer Inc, and Jilin Guoyuan Animal Health Company, agreed in September 2011 to establish a JV to develop, manufacture and distribute animal health vaccines in China. Located in the Huinan Economic Zone, in Jilin province in China, the new JV is called Jilin Pfizer Guoyuan Animal Health Co, and will focus initially on swine vaccines.

China has the world’s largest swine population, estimated at more than 600 million pigs.  The animal vaccine market in China is estimated to be valued at $800 million per year.  Jilin Pfizer Guoyuan is well placed to become the lead animal health vaccine producer.

“The Pfizer Guoyuan joint venture affirms our commitment to invest in and expand our research and development capabilities in China,” said Juan Ramón Alaix, president, Pfizer Animal Health.  “We view China as a global center for innovation.  Guoyuan, with its strong vaccine development program and scientific expertise, and newly completed manufacturing capacity in the Huinan Economic Development Zone in Jilin, makes the company the optimal partner for Pfizer Animal Health.”

Dr. Hua Wu, General Manager of Jilin Guoyuan Animal Health Company, added that the new JV begins operations from a position of strength.  “Pfizer complements Guoyuan with its world class R&D, manufacturing, regulatory and operational expertise, its founding leadership in the International Veterinary Collaboration for China, a Veterinary Alliance, as well as its growing field force and customer base in China.  I believe that Pfizer Guoyuan is well positioned to become the leading innovator of animal health vaccines and the partner of choice for China’s rapidly expanding animal agriculture industries.”

BDA advised Pfizer on external financing strategy and process, and its associated costs and other financial effects on the JV.  This is the second Chinese transaction on which BDA has advised Pfizer.

Terms of the agreement were not disclosed.  The joint venture is subject to approval by government authorities in China.

BDA Deal Team
Euan Rellie, Senior Managing Director, New York
Jeffrey Wang, Managing Director, and Head of Shanghai Office
Tanya Wang, Senior Associate, Shanghai
Kevin Song, Associate, Shanghai

About Pfizer
Pfizer Inc. is a research-based, global biopharmaceutical company. Pfizer’s diversified global health care portfolio includes human and animal biologic and small molecule medicines and vaccines, as well as nutritional products and many of the world’s best-known consumer health care products. Pfizer works across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases of our time. As the world’s leading biopharmaceutical company, Pfizer also collaborates with other biopharmaceutical companies, health care providers, governments and local communities to support and expand access to reliable, affordable health care around the world.  For more information, please visit www.pfizer.com