Pfizer (PFE) has announced a major deal with 3SBio, in-licensing the global development and commercialization rights (excluding China) for SSGJ-707, a bispecific antibody targeting PD-1 and VEGF. This partnership marks a significant step in Pfizer’s oncology pipeline, expanding its efforts in immunotherapy for cancer treatments.
SSGJ-707’s Potential in Cancer Treatment
3SBio has been developing SSGJ-707 in China for various cancers, including non-small cell lung cancer (NSCLC), metastatic colorectal cancer, and gynecological tumors. The first phase III clinical study for these indications is expected to begin later this year. Unlike existing treatments that only target the PD-1 protein, SSGJ-707 aims to block both PD-1 and VEGF proteins, which could result in a more robust anti-tumor response. The dual inhibition approach holds the promise of enhanced efficacy compared to therapies targeting just one protein.
Details of the Deal
Under the terms of the agreement, Pfizer will make an upfront payment of $1.25 billion to 3SBio. Additionally, 3SBio is entitled to milestone payments of up to $4.8 billion and tiered double-digit royalties on sales of SSGJ-707, contingent on regulatory approval. Pfizer will also make an equity investment of $100 million in 3SBio upon closing of the deal, which is expected in the third quarter of this year. Pfizer retains an option for commercialization rights in China, which adds flexibility to their strategic plans for SSGJ-707.
Challenges and Competition in the Market
Despite this promising collaboration, Pfizer has faced some challenges. Its stock has decreased by 10.2% this year, while the broader industry has seen a smaller decline of 4.0%. The company’s move into the PD-1/VEGF inhibitor space puts it in direct competition with Summit Therapeutics (SMMT), which is developing a similar dual inhibitor, ivonescimab, in partnership with Akeso. Ivonescimab has already shown positive results in treating NSCLC and is approved in China for EGFR-mutated, locally advanced or metastatic non-squamous NSCLC. Summit believes ivonescimab has the potential to rival Merck’s (MRK) Keytruda as the next standard of care in multiple NSCLC settings.
Pfizer’s Zacks Rank
Pfizer currently holds a Zacks Rank #2 (Buy), reflecting positive sentiment from analysts despite its recent challenges. Investors are keeping an eye on the company’s oncology pipeline, with SSGJ-707 and other therapies offering the potential to turn around its stock performance. For more on Zacks Rank #1 (Strong Buy) stocks, visit Zacks’ website for the full list.
