Chinese drug maker 3SBio has licensed its new cancer drug to US pharmaceutical giant Pfizer in the largest deal ever for China’s biotech industry, underscoring the strong commercial Sino-US ties despite geopolitical headwinds.
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Based in Shenyang, capital of northeastern Liaoning province, 3SBio will receive a US$1.25 billion upfront payment for licensing its cancer drug SSGJ-707 exclusively to Pfizer, which will manufacture and commercialise the drug outside mainland China, the companies announced on Tuesday.
The size of Pfizer’s upfront payment sets a record for Chinese drug licensing deals, Shanghai-based data provider PharmCube wrote in a blog post on Tuesday.
3SBio could receive additional payments of up to US$4.8 billion if certain development, regulatory and commercial milestones are met. The Chinese firm would also be entitled to tiered double-digit royalties on drug sales.
As part of the deal, Pfizer is investing US$100 million in equity in 3SBio, according to the companies.
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China’s new cancer drug gets US approval at huge price mark-up
China’s new cancer drug gets US approval at huge price mark-up
3SBio was established in 1993 by Lou Dan, a former director at a local military medical research institute in Shenyang, with an initial focus on interferons, a type of protein that helps the immune system defend against certain infections and diseases.