Pfizer Stock: Billion-Dollar Chinese Cancer Drug Deal

Pharmaceutical giant Pfizer is making significant strategic moves in oncology, investing up to $6 billion in a licensing deal with Chinese biotech firm 3SBio. The agreement centers on SSGJ-707, a promising bispezific antibody targeting both PD-1 and VEGF proteins crucial for tumor growth. The announcement triggered positive market reactions, with Pfizer's stock climbing 1.7% while 3SBio shares surged an impressive 32% in Hong Kong trading.

Financial Details and Manufacturing Plans

The deal structure includes an upfront payment of $1.25 billion to 3SBio, with potential milestone payments reaching $4.8 billion. Pfizer will also invest $100 million directly in 3SBio shares when the agreement concludes in Q3 2025. While 3SBio retains rights for the Chinese market, Pfizer gains global development, manufacturing, and marketing rights for the experimental cancer treatment. Production plans involve manufacturing the active ingredient in North Carolina and the finished product in Kansas. This strategic acquisition comes as Pfizer implements cost-cutting measures targeting $1.2 billion in savings and faces mixed quarterly results, having exceeded earnings expectations but slightly missing revenue forecasts.

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Source StockWorld