US drugmaker Pfizer said it would licence an experimental cancer treatment from China's 3SBio Inc, paying $1.25bn (R22.6bn) upfront and up to another $4.8bn (R87bn) if developmental milestones are met.
Pfizer also plans to make a $100m (R1.8bn) equity investment in 3SBio after the transaction closes, which is expected to happen in the third quarter.
Shares in 3SBio surged 35% in Hong Kong trade on Tuesday, valuing the Chinese biopharmaceutical company at nearly $6bn (R108bn).
The drug candidate, SSGJ-707, is being evaluated for non-small cell lung cancer, metastatic colorectal cancer and gynaecological tumors. It is undergoing clinical trials in China and 3SBio plans to initiate the first phase III trial in China this year.
The agreement covers the development, manufacturing and commercialisation of the drug. Pfizer has been granted a global licence, excluding China, and the option to obtain commercialisation rights in China.
3SBio said separately the drug has received clearance from the US Food and Drug Administration for its investigational new drug application.
Pfizer plans to manufacture the drug substance for SSGJ-707 in Sanford, North Carolina, and the drug product in McPherson, Kansas.
Reuters
Pfizer in deal with China’s 3SBio to licence cancer drug candidate, take equity stake
Image: REUTERS/Clodagh Kilcoyne/File Photo
US drugmaker Pfizer said it would licence an experimental cancer treatment from China's 3SBio Inc, paying $1.25bn (R22.6bn) upfront and up to another $4.8bn (R87bn) if developmental milestones are met.
Pfizer also plans to make a $100m (R1.8bn) equity investment in 3SBio after the transaction closes, which is expected to happen in the third quarter.
Shares in 3SBio surged 35% in Hong Kong trade on Tuesday, valuing the Chinese biopharmaceutical company at nearly $6bn (R108bn).
The drug candidate, SSGJ-707, is being evaluated for non-small cell lung cancer, metastatic colorectal cancer and gynaecological tumors. It is undergoing clinical trials in China and 3SBio plans to initiate the first phase III trial in China this year.
The agreement covers the development, manufacturing and commercialisation of the drug. Pfizer has been granted a global licence, excluding China, and the option to obtain commercialisation rights in China.
3SBio said separately the drug has received clearance from the US Food and Drug Administration for its investigational new drug application.
Pfizer plans to manufacture the drug substance for SSGJ-707 in Sanford, North Carolina, and the drug product in McPherson, Kansas.
Reuters
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