Pfizer (PFE, Financial) has announced a new agreement with Chinese pharmaceutical company 3SBio to jointly develop and market an anticancer drug currently under development by 3SBio. Under the terms of the agreement, Pfizer will receive exclusive rights to develop and sell the drug outside of China, with the total transaction valued at up to $6 billion.
3SBio will initially receive a $1.25 billion upfront payment, with the potential to earn up to an additional $4.8 billion based on development and sales milestones. The drug, named SSGJ-707, is undergoing multiple clinical trials in China for non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors.
Pfizer stated that 3SBio is expected to initiate the first Phase 3 clinical trial for the drug within the year. The deal is anticipated to close in the third quarter, and Pfizer plans to invest $100 million in 3SBio following the completion of the transaction.
Market reaction to the news saw Pfizer's stock rise by less than 1%, while 3SBio's shares, listed in Hong Kong, surged by 32%.
