Pfizer Invests $6B in 3SBio's PD-1/VEGF Antibody

Pfizer has recently entered into a significant licensing agreement with 3SBio, a prominent Chinese biotechnology firm, as part of its strategic efforts to bolster its cancer therapy portfolio. This deal, announced on Monday evening, involves an initial payment of $1.25 billion by Pfizer and provides the company with access to 3SBio’s innovative PD-1/VEGF bispecific antibody, SSGJ-707, which targets multiple solid tumors.

Bispecific antibodies like SSGJ-707 are a rapidly evolving category of cancer therapies that simultaneously target the PD-1 and VEGF pathways. These pathways are of particular interest in oncology due to their role in tumor growth and immune evasion. Currently, 3SBio is evaluating SSGJ-707 in clinical trials for several types of cancer, including non-small cell lung cancer, metastatic colorectal cancer, and various gynecological tumors. Plans are in place for the late-stage development of this asset to commence in China later this year.

The significance of this licensing agreement lies in its potential market impact and how it reflects Pfizer's ongoing interest in the PD-1/VEGF pathway. BMO Capital Markets, in a note to investors following the announcement, highlighted Pfizer's apparent recognition of the mechanism’s potential. Nevertheless, BMO expressed some perplexity regarding Pfizer's broader strategic approach, especially considering its earlier collaboration with Summit Therapeutics announced in February. This collaboration involves clinical trials testing Summit’s bispecific ivonescimab alongside Pfizer’s antibody-drug conjugates for various solid tumor indications.

BMO analysts questioned how Pfizer plans to integrate and distinguish between these two separate collaborations. They pondered whether one of these bispecific antibodies might offer a unique advantage over the other, potentially impacting the market opportunities available to each partnership. The analysts noted that aside from the upfront payment, the deal with 3SBio could amount to an additional $4.8 billion in various milestone payments related to development, regulatory approvals, and commercial success. Moreover, 3SBio stands to earn tiered double-digit royalties on future sales of SSGJ-707, should it successfully reach the market.

The financial commitment from Pfizer in this deal surpasses other recent PD-1/VEGF agreements emerging from China. BMO pointed out that this arrangement appears to be priced higher than similar transactions, suggesting that Pfizer may be paying a premium relative to other deals in the PD-1/VEGF landscape. BioNTech, for instance, acquired Biotheus and its bispecific PD-1/VEGF antibody for up to $950 million last November. Additionally, Merck recently paid $588 million upfront to LaNova Medicines for another PD-1/VEGF bispecific, signaling growing interest and competition in this therapeutic area.

Pfizer and 3SBio anticipate finalizing their agreement by the third quarter of this year, subject to regulatory approvals, shareholder consent, and other customary conditions. The PD-1/VEGF therapeutic mechanism gained substantial attention after Summit Therapeutics and its Chinese partner Akeso reported successful outcomes with their bispecific antibody ivonescimab, outperforming Merck's Keytruda in a recent late-stage study for non-small cell lung cancer. Ivonescimab further demonstrated its efficacy by surpassing BeiGene’s Tevimbra, earning approval in China last month.

As Pfizer continues to explore and invest in innovative cancer treatments, this partnership with 3SBio represents a pivotal step in potentially expanding its influence in the oncology market, particularly in the promising field of bispecific antibodies targeting PD-1 and VEGF pathways.