Pfizer Strikes $1.25 Billion Deal with China's 3SBio for Cancer Drug, Secures Equity Stake

In a significant move to strengthen its oncology portfolio, U.S. pharmaceutical giant Pfizer has entered a landmark agreement with China's 3SBio Inc., licensing an experimental cancer drug candidate, SSGJ-707, for an upfront payment of $1.25 billion.

The deal, announced on May 19, 2025, could see Pfizer pay up to an additional $4.8 billion if the drug meets key developmental and regulatory milestones.

This collaboration highlights the growing appetite among global pharmaceutical companies for innovative Chinese biotech assets, despite ongoing trade tensions between the U.S. and China.

Pfizer will also invest $100 million in 3SBio’s equity following the transaction’s expected closure in Q3 2025, signaling confidence in the Chinese firm’s growth potential.

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SSGJ-707: A Promising Cancer Treatment

The drug candidate, SSGJ-707, is under evaluation for multiple cancers, including non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors.

Currently in clinical trials across China, 3SBio plans to launch its first Phase III trial in the country later this year. The agreement grants Pfizer global development, manufacturing, and commercialization rights for SSGJ-707, excluding mainland China, with an option to secure commercialization rights within China.

The U.S. Food and Drug Administration recently cleared the drug’s Investigational New Drug application, paving the way for expanded trials.

Pfizer will manufacture the drug substance in Sanford, North Carolina, and the final drug product in McPherson, Kansas, leveraging its robust U.S. production capabilities.

Did You Know?
China’s biopharmaceutical market is expected to reach $150 billion by 2028, making it a critical hub for global drug development and innovation.

Market Impact and Industry Trends

The announcement sent 3SBio’s shares soaring by 35% in Hong Kong trading on May 20, 2025, boosting the company’s market valuation to nearly $6 billion. This surge reflects investor optimism about the deal’s potential to accelerate 3SBio’s global reach.

The partnership underscores a broader trend where global pharmaceutical firms are increasingly tapping into China’s biotech sector to replenish drug pipelines amid rising R&D costs and patent expirations.

However, potential U.S. tariffs on pharmaceuticals and geopolitical uncertainties pose risks to such cross-border collaborations. Recent industry analyses highlight that China’s biotech market is projected to grow at a compound annual growth rate of 8.5% through 2030, driven by innovation and government support for healthcare advancements.

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3SBio’s Global Footprint

Based in Shenyang, China, with additional facilities in Italy, 3SBio is a key player in biopharmaceuticals, with products sold in 20 countries in 2024. Its portfolio includes TPIAO, a treatment for thrombocytopenia, and Mandi, a small-molecule drug.

The company’s strategic focus on oncology and partnerships with global leaders like Pfizer positions it as a rising force in the industry. This deal aligns with Pfizer’s ongoing efforts to expand its presence in high-growth markets like China, where demand for advanced cancer therapies is rising due to increasing cancer incidence rates.