The deal comes three months after Pfizer inked a PD-1/VEGF partnership with Summit Therapeutics, leading BMO Capital Markets to express confusion regarding the pharma’s overall strategy.
Pfizer is paying $1.25 billion upfront in a licensing pact with 3SBio, gaining access to the Chinese biotech’s PD-1/VEGF bispecific antibody for various solid tumors, the pharma revealed Monday evening.
A bispecific antibody, SSGJ-707 is part of a closely watched class of cancer therapies that target the PD-1 and VEGF pathways. The asset is currently being assessed by 3SBio for non-small cell lung cancer, metastatic colorectal cancer and gynecological tumors. Late-stage development of the asset is set to start in China this year, as per Monday’s announcement.
BMO Capital Markets, writing to investors shortly after Pfizer’s announcement, said the licensing agreement “shows clear appreciation for the [PD-1/VEGF] mechanism” and “builds on a surge in recent interest” in this pathway. “We appreciate that Pfizer is looking to tap into a market that may have significant revenue potential, but we are left somewhat confused by the broader strategy.”
In particular, BMO pointed to Pfizer’s February clinical trials collaboration with Summit Therapeutics, one of the leaders in this emerging therapeutic modality. The companies will test Summit’s bispecific ivonescimab with Pfizer’s antibody-drug conjugates across a variety of solid tumor indications.
“We are left wondering how these two separate collaborations are reconciled and whether one of the PD-1/VEGF bispecifics being pursued is differentiated vs. the other and how this may lead to cannibalization of the opportunity initially available for both deals,” the analysts wrote.
Aside from the $1.25 billion upfront sum, Monday’s deal also puts Pfizer on the hook for up to $4.8 billion in development, regulatory and commercial milestones. Additionally, 3SBio will be eligible for tiered double-digit royalties on sales of SSGJ-707 if it reaches the market.
The total potential investment is higher than other PD-1/VEGF deals coming out of China, BMO noted, adding that the “deal seems to be priced at a premium to others” in the PD-1/VEGF space. “We cannot help but notice Pfizer paying the fee for being late to a new market,” they added.
BioNTech, for instance, acquired partner Biotheus and its bispecific PD-1/VEGF antibody in November for up to $950 million. The next day, Merck paid $588 million upfront to LaNova Medicines for its own PD-1/VEGF bispecific.
Pfizer and 3SBio expect to close the deal in the third quarter of this year, pending regulatory clearances, shareholder approval and other customary closing conditions.
The PD-1/VEGF mechanism first gained widespread attention in September last year, when Summit and its Chinese partner Akeso claimed victory for their ivonescimab over Merck’s blockbuster PD-1 blocker Keytruda in a late-stage NSCLC study. Last month, ivonescimab likewise outperformed BeiGene’s Tevimbra and won approval in China.
