Pfizer and 3SBio have completed a licensing agreement that grants the US pharmaceutical giant worldwide rights to sell the Hong Kong-listed firm’s cancer drug, marking the largest deal ever for a single drug in China’s biotech industry.
Advertisement
First announced in May, the deal will see 3SBio – based in Shenyang, capital of northeastern Liaoning province – receive a US$1.25 billion upfront payment from Pfizer for the exclusive right to sell its cancer drug, SSGJ-707, outside China.
Under the terms of their agreement, Pfizer will also pay 3SBio up to US$150 million to solely develop and commercialise SSGJ-707 within the mainland, the two companies said on Thursday.
Pfizer also agreed to buy 31.1 million new shares in S3Bio, or a 1.3 per cent equity stake, for HK$785 million, according to a stock exchange filing. The deal at HK$25.2055 per share represents a 17 per cent discount to its market price on Thursday.
3SBio’s shares fell 6.41 per cent to HK$28.45 on Friday.
Advertisement
The transaction reflected the strong momentum of Chinese biotech firms in the field of drugs research and the increased interest from major foreign pharmaceutical companies to license their intellectual property.