LONDONSHANGHAI Oct 9 Reuters China39;s largest vaccines company Zhifei will pay British drugmaker GSK 2.5 billion pounds 3.05 billion pound for the exclusive rights to distribute GSK39;s shingles vaccine in the world39;s No.2 pharmaceuticals market.

The deal is one of a series of moves by western pharmaceutical firms to seize a bigger share of China39;s market, including announcements from companies such as AstraZeneca.

The vaccine, named Shingrix, is GSK39;s topselling medicine. The deal with Zhifei is part of its efforts to reach more than 4 billion pounds 4.88 billion in sales by 2026, GSK said.

GSK said Zhifei has a strong track record of driving access to innovative vaccines in China and has significant scale. The deal will result in the vaccine being available in more than 30,000 locations across China, up from 9,500 currently.

Zhifei will purchase volumes of Shingrix with a value to GSK worth 2.5 billion pounds over an initial threeyear period, GSK said.

The agreement is set to start on Jan. 1. Zhifei shares were up as much as 20 to 58.40 yuan 8.00 following the filing, their highest since March 27. GSK shares were up 1.2 by 0812 GMT, near their session high.

Shingrix is currently GSK39;s biggest product and strongest growth driver, taking in 1.71 billion pounds in firsthalf sales, up 20 from a year prior.

JPMorgan analysts said in a note that the announcement derisks GSKs Shingrix China sales for the next three years and holds the potential for as much as a…