Pfizer inks $6B agreement with China's 3SBio for cancer bispecific

Pfizer has entered into a significant licensing agreement valued at over $6 billion with the Chinese biotechnology company 3SBio. This deal, announced recently, grants Pfizer the exclusive rights outside China to develop, manufacture, and commercialize 3SBio's promising bispecific antibody, SSGJ-707, which targets both PD-1 and VEGF pathways for cancer treatment. The news of this agreement resulted in a notable increase in 3SBio's stock value, which rose by over 30% on the Hong Kong stock exchange.

Under the agreement terms, Pfizer will provide an upfront payment of $1.25 billion to 3SBio, marking a record-breaking amount for licensing deals involving Chinese biotech firms. In addition to the initial payment, 3SBio stands to receive up to $4.8 billion in milestone payments, along with royalties based on sales that will be tiered and reach double-digit figures. Moreover, Pfizer has the option to acquire commercialization rights within China at a future date.

SSGJ-707 is a bispecific antibody that simultaneously targets two critical pathways involved in cancer progression: immune checkpoint inhibition through PD-1 and anti-angiogenesis via VEGF. Early trials of this innovative treatment have shown promising results in terms of efficacy and safety. The drug is currently being tested across various solid tumors, and 3SBio is preparing to initiate its first Phase III clinical trial in China later this year. This trial aims to further investigate the potential of SSGJ-707 in providing effective treatment for cancer patients.

Upon the anticipated closing of this transaction in the third quarter, pending necessary regulatory and shareholder approvals, Pfizer plans to make an additional $100-million equity investment in 3SBio. Furthermore, Pfizer is set to establish manufacturing operations for SSGJ-707 at its facilities located in North Carolina and Kansas. This strategic move highlights Pfizer's commitment to expanding its oncology portfolio and strengthening its foothold in the global biopharmaceutical market.

This collaboration comes at a time of growing competition in the PD-(L)1/VEGF bispecific antibody field. Notable contenders include Akeso and Summit Therapeutics’ ivonescimab, as well as BioNTech’s BNT327. These companies are striving to challenge the dominance of Merck & Co.'s renowned drug Keytruda (pembrolizumab). Merck is countering this competition by advancing the development of LaNova Medicines’ LM-299 to maintain its leadership position in the market.

Pfizer's agreement with 3SBio is a part of a broader trend observed among leading biopharmaceutical companies seeking partnerships with Chinese firms. This strategy allows them to tap into the innovation and potential of China's rapidly growing biotech sector. Previously, Pfizer has collaborated with CStone Pharmaceuticals to gain rights to CStone's experimental PD-L1 antibody sugemalimab in China, further demonstrating its interest in leveraging Chinese assets to bolster its research and development efforts.

Through this latest agreement, Pfizer aims to enhance its cancer treatment arsenal and reinforce its position as a key player in the field of immuno-oncology. With the development and potential commercialization of SSGJ-707, Pfizer is poised to contribute significantly to the advancement of cutting-edge cancer therapies and improve outcomes for patients worldwide.