China is at a high risk of shortage of treatment for pneumonia and other related infections following Pfizer Inc pullout of its vaccines operations after the Chinese government failed to renew its license for one of its products.

In a statement, Pfizer said last Thursday that the non-renewal of its import license for the product, Prevenar, will cause a shortage of the treatment in China.

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The statement said the license for its product, Prevenar, had expired last week and China has not renewed it, increasing the likelihood of untreated  pneumonia among children.

Pfizer said that  Prevanar, sold as Prevnar in the United States, is a vaccine that protects children  against pneumococcal disease that can lead to pneumonia and other infections.

"Based on a careful assessment of this situation, we have decided to cease our Vaccines commercial operations in China at this time, effective immediately," the statement said.

The statement emphasized that it is the only company that sells the drug in China and it anticipates a shortage of treatment once the vaccine bureau has closed.

Two versions of the vaccine are currently awaiting approval by Chinese regulators--Prevenar 7 and updated Prevenar 13..

Pfizer officials refused to divulge the reasons for China's non-renewal of its license but speculations are rife that regulators at China's Food and Drug Administration have become stringent in its oversight since its drug market has expanded.

Industry insiders  also said that the FDA lacks the manpower to approve pending licenses, creating a backlog of approval.

Pfizer said some 200 employees will be affected by the vaccines closure but it was quick to point out that they will be absorbed by their company  in China which employs 9.000 people.

The statement said the company will find positions for the 200 employees who have lost their jobs in the bureau.

Global sales of Prevenar-branded vaccines was pegged at $4.5 billion last year.

TagsPrevenar, Food and Drug Administration, Pfizer, pneumonia