(Sharecast News) - GSK has entered into a new exclusive vaccine partnership in China that will extend the availability of its shingle vaccine Shingrix, which will see the UK-listed group generate £2.5bn over the next three years.
The pharmaceutical giant is partnering with Chongqing Zhifei Biological Products (or Zhifei), China's largest vaccine company, to promote Shingrix through the latter's service network, which covers more than 30,000 vaccination points across the country.
The partnership is for three years initially and will start on 1 January 2024 - though there is the potential to extend the deal if all parties agree.
Initially, however, Zhifei will buy £2.5bn-worth of Shingrix over the initially agreed period - helping GSK in its target to double global Shingrix sales to over £4bn by 2026.
Under the terms of the deal, Zhifei has granted GSK the right of first refusal to be its exclusive partner for any co-development and commercialisation of an RSV vaccine for older adults in China.
GSK said this paves the way for the companies to potentially partner on its Arexvy vaccine, currently upon approval in China.
Arexvy has been approved by US, European and Japanese regulators over recent months to prevent lower respiratory trace disease caused by RSV in people over the age of 60.
"This partnership is consistent with our focus on products with a high and durable level of differentiation," said Luke Miels, GSK's chief commercial officer.
"It materially expands the number of Chinese adults who can benefit from Shingrix and includes the option to extend the collaboration to include our novel RSV vaccine, Arexvy."
Glaxosmithkline (GSK)