(Reuters) -U.S. drugmaker Pfizer said it would license an experimental cancer treatment from China’s 3SBio Inc, paying $1.25 billion upfront and up to another $4.8 billion if developmental milestones are met.
Pfizer also plans to make a $100 million 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 $6 billion.
The drug candidate, SSGJ-707, is being evaluated for non-small cell lung cancer, metastatic colorectal cancer and gynaecological tumors. It is undergoing multiple 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 license, excluding China, as well as the option to obtain commercialisation rights in China.
3SBio said separately that the drug has received clearance from the U.S. 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.
(Reporting by Kanjyik Ghosh and Mrinmay Dey in Bengaluru; Editing by Miyoung Kim and Edwina Gibbs)
