US pharmaceutical giant Pfizer has divested its 49% stake in Hisun-Pfizer Pharmaceuticals its Chinese joint venture with Zhejiang Hisun Pharma. As part of the plan, Sapphire I Holdings, which is indirectly controlled by private equity firm Hillhouse Capital, will acquire Pfizer’s shareholding.

Hisun-Pfizer Pharmaceuticals was founded in 2012 to develop, manufacture and sell branded generic drugs in China and neighboring regions. Its portfolio includes branded generics covering cardiovascular disease, infectious disease, oncology, mental health and other therapeutic areas.

According to press reports, the US drugmaker had been considering exiting since the end of last year, when the jv’s lead product, Tazocin, an injectable containing piperacillin and tazobactam, began experiencing supply issues due to a manufacturing upgrade at Pfizer’s plant in Italy, and at the same time the US Food and Drug Administration (FDA) issued an import alert over output of Hisun’s API plant.

In any case, Pfizer is seen to be keen to establish itself as an independent player in the Chinese market.

Through the arrangement with its US partner, API manufacturer Hisun was able move into the finished drugs market for the first time. Under the severance terms, Pfizer said it will continue to provide technical, manufacturing and regulatory support services to the jv as well as transferring technology to ensure that products it previously supplied can continue to be manufactured in China. The transfer process is expected to take about five years.