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Biomedicine: Companies
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Pfizer, Chinese biotech firm 3SBio complete worldwide licensing deal for cancer drug

Pfizer agreed to an upfront payment of US$1.25 billion, US$150 million for mainland rights and a US$100 million equity investment in 3SBio

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Pfizer agreed to buy a 1.3 per cent equity stake in 3SBio for HK$785 million. Photo: Shutterstock
Xinmei Shen
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.
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.

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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.

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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.

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