Pfizer and Zhejiang Hisun Pharmaceutical are establishing a joint venture to develop, manufacture and commercialize off-patent pharmaceutical products in China and global markets.

The agreement builds on the companies’ memorandum of understanding (MOU) and aims to strengthen the ability of both companies to reach more patients with high-quality medicines in the branded generics arena.

The potential joint venture will be named Hisun Pfizer Pharmaceutical Co. Hisun will own 51% and Pfizer will own 49%, and the aggregate investment and registered capital will be $295 million and $250 million, respectively. Both parties could contribute selected existing products, manufacturing sites, cash and other relevant assets after the joint venture is formed.

The potential joint venture is subject to the satisfaction of certain closing conditions, including approval of relevant government authorities in China.