Pfizer sets record $1.25 billion deal to license promising Chinese cancer drug

In a landmark move highlighting growing confidence in China’s biotech sector, Pfizer has agreed to pay an unprecedented $1.25 billion upfront to license an experimental cancer drug from Shenyang-based 3SBio Inc. This deal marks the largest-ever licensing fee for a Chinese biotech drug, reflecting multinational pharma giants’ increasing interest in innovative treatments emerging from China.

The drug, currently undergoing clinical trials targeting multiple tumour types, will be developed and commercialised by Pfizer under the agreement, Caliber.Az reports, citing foreign press.

Alongside the upfront payment, 3SBio stands to earn up to $4.8 billion in future milestone payments if the drug meets certain development and sales targets, making this one of the most lucrative deals in recent biotech history.

3SBio’s shares soared by as much as 52% on the Hong Kong stock market—the largest one-day gain on record for the company—continuing a rally for the third day in a row.

In addition to the licensing fee, Pfizer will also invest $100 million directly into 3SBio’s Hong Kong-listed shares. 3SBio’s existing portfolio includes treatments for cancer, autoimmune disorders, kidney diseases, and skin conditions, making it a well-established player in China’s pharmaceutical landscape.

This blockbuster deal places Pfizer among a growing group of global pharma companies seeking to boost their drug pipelines with Chinese-originated therapies. Recent months have seen firms like Novo Nordisk and Merck & Co. invest hundreds of millions upfront for obesity and cardiovascular drugs developed in China.

Pfizer’s new acquisition aims to challenge Merck’s blockbuster Keytruda, the world’s top-selling cancer drug. 3SBio’s candidate operates through a similar mechanism and has shown promising results comparable to another Chinese drug from Akeso Inc., which notably outperformed Keytruda in one clinical trial. Merck itself has also acquired a comparable drug from Chinese biotech LaNova Medicines.

3SBio plans to initiate the drug’s first late-stage clinical trial in China this year. Pfizer, while not specifying its own clinical development timeline, confirmed it will manufacture the drug in the United States, signalling a major step toward bringing this innovative therapy to global markets.

By Tamilla Hasanova