3SBio and Pfizer Strike Historic $60.5 Billion Deal for Groundbreaking Cancer Therapy

Three days ago, China's 3SBio reported that it reached a comprehensive agreement with Pfizer to license out its innovative PD-1/VEGF bispecific antibody, labeled SSGJ-707. The agreement is valued at an impressive $60.5 billion, marking a remarkable milestone in China’s pharmaceutical sector.

Under the terms, Pfizer will acquire exclusive rights to globally develop, produce, and commercialize SSGJ-707, except in China mainland. 3SBio, along with its subsidiary in Shenyang, will receive an upfront payment of $12.5 billion, complemented by milestone payments that may reach up to $48 billion based on development and sales achievements. Additionally, further sales will lead to substantial royalty income.

SSGJ-707, developed from 3SBio’s proprietary CLF2 platform, is designed to simultaneously inhibit PD-1 and VEGF pathways. The therapy has shown promising results in clinical trials, particularly for PD-L1 positive non-small cell lung cancer (NSCLC). With the confirmed potential of achieving industry-leading therapeutic outcomes, the drug recently obtained breakthrough therapy designation from China's National Medical Products Administration.

The major transaction has not only set a record in terms of licensing deals for Chinese biopharmaceuticals but also has ignited significant movement within the Hong Kong stock market. Following the announcement, 3SBio's shares soared by over 35%, suggesting robust investor confidence in the company’s innovation potential and its prospective expansion beyond local markets.

This collaboration between Pfizer and 3SBio signifies a notable advancement for Chinese pharmaceutical innovations entering the global stage, particularly in the highly competitive cancer treatment space. As China increasingly emerges as a hub of biotechnological development, collaborations such as this could foreshadow a broader acceptance and integration of Chinese-developed therapies in international markets.