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On May 19, Pfizer Inc. (NYSE:PFE) announced it had entered into a licensing agreement valued at approximately $6 billion with Chinese biopharmaceutical firm 3SBio Inc. for the development, production, and commercialization of a potential cancer treatment.
According to Pfizer Inc. (NYSE:PFE), the drug candidate is being tested for use against non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors, and is currently in multiple clinical trials in China. 3SBio is expected to launch its first Phase III trial in the country later this year.
As part of the deal, 3SBio will receive an upfront payment of $1.25 billion and could earn up to $4.8 billion more in milestone-based payments tied to development, regulatory, and commercial achievements. If approved, 3SBio would also be entitled to tiered double-digit royalties on sales of the drug, named SSGJ-707.
Following the announcement, 3SBio’s shares surged by as much as 52% in Hong Kong, which was its largest gain on record, and marked a third straight day of gains.
Pfizer Inc. (NYSE:PFE) will also invest $100 million in 3SBio through an equity purchase. 3SBio currently markets a variety of treatments in China targeting cancer, autoimmune conditions, kidney diseases, skin disorders, and other illnesses. The move reflects a broader trend among major pharmaceutical companies, including Pfizer, to partner with Chinese firms to strengthen their drug pipelines.
This move will further reinforce Pfizer Inc. (NYSE:PFE) cancer drug portfolio, which is already one of the company’s key areas of focus. In FY24, its oncology segment reported over $4 billion in revenues, up 27% on a YoY basis.
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