A unit of a Chinese giant Shanghai Fosun Pharmaceutical has agreed a $200 million joint-venture with Germany’s BioNTech to make coronavirus vaccines, according to a company filing.
Shanghai Fosun Pharmaceutical Industry Development will contribute up to $100 million in assets including cash and a manufacturing facility, capable of producing up to a billion jabs a year, according to the statement by the parent company on Sunday.
The announcement comes after the United States backed a plan for a waiver on COVID-19 patent protections, in a bid to get the drugs to poorer countries—sending shares in Asia-listed vaccine makers tumbling last week.
Fosun said the joint venture firm for manufacturing and commercialising coronavirus vaccines will be owned 50 percent each by each company.
The 15-year joint venture would be incorporated in Shanghai.
BioNTech will contribute assets such as “licensing of the relevant manufacturing technology and know-how”, the statement said.