Pfizer Inc (NYSE:PFE, ETR:PFE) has agreed a licensing deal worth up to $6 billion with Chinese biopharmaceutical group 3SBio to develop and commercialise an experimental cancer treatment.
The drug, SSGJ-707, is currently in clinical trials in China for use against lung, colorectal and gynaecological cancers. Under the agreement, 3SBio will receive an upfront payment of $1.25 billion and could earn up to $4.8 billion more through milestone payments.
Pfizer will also invest $100 million in 3SBio via an equity stake. The deal gives 3SBio the rights to commercialise the drug in China, while Pfizer retains global rights.
The announcement sent 3SBio shares up more than 34% in Hong Kong. The move bolsters Pfizer’s oncology portfolio, a key growth area for the company.