3SBIO and Pfizer have entered into a licensing agreement for the PD-1/VEGF bispecific antibody (SSGJ-707)

According to the announcement from 3SBIO (01530), on May 19, 2025, the company, Shenyang 3SBIO Pharmaceutical Co., Ltd. (Shenyang 3SBIO, a wholly-owned subsidiary of the company), and Pfizer have entered into an exclusive licensing agreement. 3SBIO Guojian Pharmaceutical (Shanghai) Co., Ltd. (3SBIO Guojian, a subsidiary of the company) will also join the agreement as a signing party.

Under the licensing agreement, the company and Shenyang 3SBIO will grant Pfizer an exclusive license to develop, manufacture, commercialize, and otherwise develop its breakthrough PD-1/VEGF bispecific antibody (“licensed product” or “SSGJ-707”) globally (excluding mainland China). The company and Shenyang 3SBIO will retain the rights to develop, manufacture, commercialize, and otherwise develop the licensed product in mainland China. Pfizer will have the option to commercialize the licensed product in China.

Pfizer shall be responsible for all future trial development and regulatory affairs costs for the licensed product in the licensed territories.

According to the licensing agreement, the group will receive an upfront payment of $1.25 billion and may receive potential payments totaling up to $4.8 billion, including development, regulatory approval, and sales milestone payments. All of the above amounts are non-refundable and non-deductible. The group will also receive a double-digit percentage tiered royalty on the net sales of the product in the licensed territories.

The licensed product is a bispecific antibody targeting PD-1/VEGF independently developed by the group based on its proprietary CLF2 platform. It is currently undergoing multiple clinical studies in China, including a planned Phase III clinical study for first-line treatment of PD-L1 positive locally advanced or metastatic non-small cell lung cancer (NSCLC), which has received breakthrough therapy designation from the National Medical Products Administration (NMPA) in China. Additionally, SSGJ-707 injection is undergoing multiple Phase II studies in China, including first-line treatment of advanced NSCLC, metastatic colorectal cancer, and advanced gynecological tumors in combination with chemotherapy. It has also received approval from the U.S. Food and Drug Administration for its new drug clinical trial application.

Furthermore, Pfizer will subscribe for $100 million worth of common stock of the company at the 30-day volume-weighted average price (subject to applicable rules and regulations, including listing rules) according to the terms set forth in the share subscription agreement (formal agreement) on the effective date. The agreement will be further negotiated and agreed upon by the parties after the date of the licensing agreement. The exact terms and number of new shares to be issued to Pfizer (or its nominees) will be determined and finalized in the formal agreement