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Pfizer has announced a deal to develop and sell a cancer drug.Key Takeaways
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Pfizer said late Monday that it has agreed to a deal to help develop and market a Chinese cancer drug across the globe.
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Chinese firm 3SBio is developing a drug that is in trials to treat several forms of cancer, and Pfizer will have the right to exclusively sell it outside of China.
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Pfizer will pay $1.25 billion up front, with up to $4.8 billion in future payments contingent on developmental and sales milestones.
Pfizer (PFE) has announced a new agreement to develop and market a cancer drug currently being developed by Chinese drugmaker 3SBio.
The deal allows Pfizer to exclusively develop and sell the drug outside of China, with a total value of up to roughly $6 billion. 3SBio will get a upfront payment of $1.25 billion, with up to $4.8 billion in later payments based on developmental and sales milestones.
The drug in question is called SSGJ-707, and is "currently undergoing several clinical trials in China for non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors."
Pfizer said 3SBio is expected to launch the first Phase 3 clinical trial for the drug sometime this year. The deal is expected to close in the third quarter, and Pfizer said it will invest $100 million into 3SBio after the transaction is closed.
Pfizer shares were up less than 1% ahead of markets opening on Tuesday, while shares of 3SBio listed in Hong Kong soared 32% in the day's session.
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