HQ Team
May 20, 2025: Pfizer Inc. has signed a licensing deal worth about $6 billion with China’s 3SBio to develop, manufacture and commercialise an experimental cancer drug.
The drug, called SSGJ-707, is being tested in China to treat several types of cancer, including lung cancer, colorectal cancer, and some cancers affecting women, according to a statement from Pfizer.
Pfizer will have the exclusive rights to develop, manufacture, and sell this drug everywhere, except in China. It also has the option to sell it in China later if it chooses.
“3SBio and its subsidiaries, Shenyang Sunshine Pharmaceutical Co., Ltd. and 3S Guojian Pharmaceutical (Shanghai) Co., Ltd, will grant Pfizer an exclusive global license to develop, manufacture and commercialise SSGJ-707 worldwide, excluding China,” according to the statement.
$1.25 billion upfront
Pfizer will pay 3SBio $1.25 billion upfront and could pay up to $4.8 billion more depending on how well the drug develops and sells. The US company will also pay royalties, as a percentage of sales, if the drug is approved. Early results show the drug is promising in fighting cancer safely.
The deal is expected to be finalised by the third quarter of 2025, after necessary approvals. Pfizer will invest $100 million as an equity investment in 3SBio once the deal is complete. Pfizer plans to produce the main drug ingredient in North Carolina and the finished medicine in Kansas.
In November 2024, Pfizer, under activist investor pressure, announced its China expansion. Pfizer China President Jean-Christophe Pointeau said the company will invest $1 billion in the country over the next five years.
This investment aims to enhance its presence in the world’s second-largest pharmaceutical market, which has been growing rapidly due to increasing drug spending and favourable regulatory reforms.
China investment, acquisitions
So far, Pfizer has invested over $1.5 billion in China. Pfizer has established one state-of-the-art manufacturing facility and two research and development centres in Shanghai Zhangjiang High-Tech Park and Wuhan Biolake – the national biological industrial base.
Pfizer invested $200 million in CStone Pharmaceuticals, acquiring a 9.9% stake. This partnership grants Pfizer exclusive rights to commercialise CStone’s cancer immunotherapy, sugemalimab, in mainland China and collaborate on other cancer drugs.
Pfizer also announced a collaboration with LianBio, committing up to $70 million for in-licensing and co-developing drugs aimed at the Chinese market. This partnership allows Pfizer first rights to negotiate commercialisation for any jointly developed products.
The pharmaceutical company has entered into an agreement with Beijing Tianguangshi Biotechnology and Kangyuan Bochuang Biotechnology on treatments for multiple myeloma.
