Pfizer licenses 3SBio cancer drug for $1.25B upfront

Pfizer (NYSE:PFE) has signed an exclusive global licensing deal with China’s 3SBio for the development of its cancer drug candidate, SSGJ-707.

SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, is currently undergoing several clinical trials in China for non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors. 3SBio plans to initiate the first Phase 3 study in China in 2025.

The license deal grants Pfizer (NYSE:PFE) an exclusive global license to develop, manufacture and commercialize SSGJ-707 worldwide, excluding China, as well as an option for commercialization rights in China.

Pfizer plans to manufacture drug substance for SSGJ-707 in Sanford, North Carolina, and drug product in McPherson, Kansas.

3SBio will receive an upfront payment of $1.25B and is eligible to receive milestone payments associated with certain development, regulatory and commercial milestones up to $4.8B as well as tiered double-digit royalties on sales of SSGJ-707, if approved.

The transaction is expected to close in the third quarter.

Upon close, Pfizer will make a $100M equity investment in 3SBio subject to an agreed upon securities subscription agreement between the parties.