The largest Chinese licensing deal behind Pfizer’s is Novartis’ partnership with Shanghai Argo Biopharma, worth potentially more than $4 billion.
Pharma has been hungry for deals with Chinese biotechs, but the latest from Pfizer outpaces the recent trend with $6 billion in total potential value.
Pfizer threw out a whopping $1.25 billion upfront to work with 3SBio on a PD-1/VEGF bispecific antibody Monday afternoon. The deal also includes up to $4.8 billion in possible milestones plus royalties on sales if the drug, SSGJ-707, ever hits the market.
Milestone payments are not always paid out, and companies only occasionally reveal specific payouts along the lifecycle of the deal. But Pfizer’s outlay is notable for its size.
Pfizer is also joining a busy PD-1/VEGF space that many others have gotten to before it, and this could contribute to the high pricetag for 3SBio’s drug. The New York pharma is “paying the late fees,” BMO Capital Markets said in a Tuesday evening note.
The next-biggest Chinese licensing deal is Novartis’ more than $4 billion partnership with Shanghai Argo Biopharma, signed in January 2024. Novartis paid Argo $185 million upfront, with the remaining $4.17 billion available later based on certain milestones. The partners are working on a Phase I/II RNA program for cardiovascular disease, plus rights to up to two additional targets.
The rush in Chinese biopharma deals comes amid warnings that U.S. biotech is ceding its innovation crown to the region. The global trade war spurred by President Donald Trump is also making these deals more complicated, but with pharmas seeing the potential in next-generation drugs, they keep on coming.
