Pfizer licenses cancer immunotherapy from 3SBio in $1.25 billion deal

NEW YORK - Pfizer Inc. (NYSE:PFE), a prominent pharmaceutical company with a market capitalization of $144 billion and impressive gross profit margins of 74%, has completed a global licensing agreement with Hong Kong-listed 3SBio Inc. (01530.HK) for exclusive rights to develop, manufacture and commercialize SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, the company announced Thursday. According to InvestingPro analysis, Pfizer maintains a strong financial health rating, positioning it well for strategic acquisitions.

Under the agreement, which excludes China, Pfizer will pay 3SBio $1.25 billion and make a $100 million equity investment in the company. Pfizer also secured an option to extend the license to include exclusive rights in China for up to $150 million in additional payments.

SSGJ-707 is currently in clinical trials in China for non-small cell lung cancer (NSCLC), metastatic colorectal cancer, and gynecological tumors. Interim Phase 2 results for NSCLC were recently presented at the American Society of Clinical Oncology Annual Meeting.

"We are excited to contribute our significant expertise and resources to advance rapidly the development of the SSGJ-707 program including novel combination strategies across a number of our major tumor areas of focus," said Chris Boshoff, Chief Scientific Officer and President of Research & Development at Pfizer.

Pfizer plans to manufacture the drug substance at its Sanford, North Carolina facility and the drug product in McPherson, Kansas. The company intends to initiate global Phase 3 studies with priority given to NSCLC and other solid tumors, with the first trials beginning enrollment in the U.S.

The acquisition adds to Pfizer’s oncology portfolio, which includes small molecules, antibody-drug conjugates, and bispecific antibodies targeting common cancers such as breast, genitourinary, hematological and thoracic malignancies. InvestingPro analysis suggests Pfizer is currently undervalued, with a generous 6.78% dividend yield supporting shareholder returns while the company expands its product pipeline. For detailed valuation metrics and additional insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The information in this article is based on a company press release statement.

In other recent news, Pfizer and BioNTech have appealed a UK court ruling that found their COVID-19 vaccine infringed on a patent held by Moderna. This appeal is the latest in an ongoing legal battle between the pharmaceutical giants. Additionally, Pfizer is undergoing a corporate restructuring, which includes the departure of Sally Susman, the chief corporate affairs officer, whose responsibilities will be distributed among five executives. In another development, the House Judiciary Committee has subpoenaed former Pfizer executive Dr. Philip Dormitzer as part of an investigation into alleged delays in COVID-19 vaccine testing.

Meanwhile, Energy Exploration Technologies, Inc. (EnergyX) announced a binding agreement to acquire Daytona Lithium Pty Ltd from Pantera Lithium Limited for A$40 million. This acquisition will expand EnergyX’s Smackover lithium brine resources to nearly 50,000 acres. In a separate development, UBS has initiated coverage on 3SBio Inc with a Buy rating, highlighting a significant out-licensing agreement with Pfizer for a product with a potential deal size of US$6.15 billion. These developments underscore the dynamic changes and strategic movements within the pharmaceutical and energy sectors.

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