Breaking New Ground: Inside the Landmark Pfizer–3SBio Oncology Deal

May 20, 2025

The biopharma world is abuzz. In May 2025, Pfizer announced a deal that is being hailed as a watershed moment – not just for the companies involved, but for the entire innovation pipeline connecting East and West. With a headline figure of over $6 billion, this is the largest upfront ever for a China-developed oncology asset, and the deal is set to ripple through immuno-oncology and global licensing for years to come.

What’s really happening beneath the headlines? What does this mean for the next wave of cancer drug development, for the role of Chinese innovation on the global stage, and for the new bar set for late-stage asset valuations?

This article breaks down the science, strategy, risks, and wider implications of Pfizer’s record-breaking licensing agreement with 3SBio for SSGJ-707 – a bispecific antibody that could redefine the PD-1/VEGF landscape.

1. The Headline: Pfizer’s $6 Billion Bet

On May 19–20, 2025, Pfizer and 3SBio Inc. announced an exclusive global licensing agreement for SSGJ-707, a next-generation bispecific antibody targeting PD-1 and VEGF. The terms are jaw-dropping:

$1.25 billion upfront (non-refundable, non-creditable) – a new record for any Chinese out-licensing deal.
Up to $4.8 billion in development, regulatory, and commercial milestones.
$100 million equity investment by Pfizer in 3SBio.
Double-digit tiered royalties on net sales.
Pfizer takes exclusive rights ex-China, plus an option to acquire China rights in future.

Pfizer will manufacture drug substance and product in the US, signaling long-term commitment and confidence in commercial potential. The agreement is set to close in Q3 2025, pending regulatory and shareholder approvals.

Why so much? This is a classic “red-hot race” scenario: the PD-1/VEGF bispecific class is booming, and Pfizer, having been outpaced by others in recent years, is betting big to leapfrog competitors with an asset already de-risked by promising Phase 2 China data.

2. The Science: Why SSGJ-707?

At the heart of this deal is SSGJ-707, an internally developed bispecific antibody from 3SBio’s subsidiary, 3S Guojian, built on their proprietary CLF2 platform.

How does it work?

Dual-targeting: SSGJ-707 simultaneously blocks PD-1 (removing immune “brakes”) and VEGF (starving tumors of new blood supply).
The promise: Synergistic anti-tumor effects and a simplified alternative to combination regimens of separate agents.

The clinical data (so far):

First-line, PD-L1 positive NSCLC (monotherapy):
- Objective Response Rate (ORR): 70.8%
- Disease Control Rate (DCR): 100%
First-line squamous NSCLC (chemo combo):
- ORR: 81.3%
- DCR: 100%
Third-line metastatic colorectal cancer (mCRC, monotherapy):
- ORR: 33.3% – notable in a heavily pre-treated population.

SSGJ-707 is moving into Phase 3 trials in China for NSCLC and has IND clearance from the US FDA. Pfizer’s global program will build off this foundation, but the critical test will be replicating these high response rates and confirming survival benefits in Western populations.

3. The Rationale: Why Pfizer? Why Now?

Pfizer’s Perspective

Pipeline acceleration: Oncology is a declared strategic priority, and Pfizer is investing heavily in late-stage biologics – see also the Seagen acquisition.
Missing piece: With the PD-1/VEGF bispecific market heating up and competitors (Summit/Akeso, BioNTech, Merck/LaNova) making progress, Pfizer needed an asset with both clinical promise and global rights.
China data edge: The Phase 2 results in NSCLC and mCRC gave Pfizer a rare late-stage entry point – with the added bonus of owning the asset for ex-China markets.
US-based manufacturing: By taking control of production, Pfizer can scale supply rapidly, assure quality, and manage costs – important for the global commercial ambitions of SSGJ-707.

3SBio’s Perspective

Validation: The upfront alone is a new high watermark for China biotech. This is a signal to investors and partners that 3SBio is no longer just a domestic champion – it’s a global player.
Financial firepower: $1.25 billion upfront (plus $100 million equity) enables 3SBio to rapidly advance its own pipeline of 30+ assets, spanning oncology, autoimmune diseases, and ophthalmology.
Retention of China rights: By keeping domestic rights (and offering Pfizer an option later), 3SBio maximizes both current and future value capture.
Reputation boost: The deal pushed 3SBio’s share price up by more than 30% and doubled its market cap overnight, turbocharging its status as a credible innovator.

4. The Competitive Arena: Who Else Is in the Race?

The PD-1/VEGF bispecific class is crowded and moving at breakneck speed:

Summit/Akeso (ivonescimab): First to global Phase 3, recently approved in China for NSCLC. Initial OS (overall survival) data were mixed – setting a high bar for the class.
BioNTech/Biotheus (BNT327): Phase 2/3 underway, with plans to combine with ADCs.
Merck/LaNova (LM-299): $588 million upfront, early phase studies ongoing.
Many others: Over a dozen additional PD-1/VEGF bispecifics are in earlier clinical development, most from Chinese companies.

Key challenge:
All these programs are chasing one thing – clear, statistically significant survival gains (PFS and OS) over the current standard of care (Keytruda-based regimens) in global, diverse patient cohorts. High response rates in China are promising, but OS data in Western trials remain the ultimate test.

5. What This Means for Global Biotech

Valuations Are Shifting

This deal instantly recalibrates what late-stage Chinese assets can command. For global pharma, the cost of entry is higher – but so is the perceived innovation risk if you’re left behind.

China Innovation Goes Global

Pfizer’s upfront and public vote of confidence will drive more international interest in China-developed biologics. The “factory” narrative is fading fast; China is now a genuine source of first-in-class science.

East-to-West Licensing as the New Normal

This is no longer an exception – it’s the new model. Investors and execs everywhere are watching to see which Chinese asset will be next.

6. The Risks and the Road Ahead

No deal this size is risk-free.

Clinical risk: Will the efficacy and safety hold up in global Phase 3 trials? Can SSGJ-707 beat Keytruda (especially in OS) in Western populations?
Manufacturing scale-up: Bispecifics are complex; supply, cost, and quality will be closely watched.
Market access: Competition is fierce, and payer expectations for premium pricing will hinge on proven survival gains.
Collaboration risk: Pfizer and 3SBio must seamlessly integrate data sharing, clinical strategy, and regulatory approach – a test for any East-West alliance.

If SSGJ-707 delivers, it sets the blueprint for a new wave of billion-dollar cross-border partnerships—and potentially puts Pfizer in pole position in next-gen immuno-oncology.
If not, this may be remembered as one of pharma’s boldest (and costliest) “leap of faith” moments.

7. Conclusion: The Bellwether Deal for a New Era

The Pfizer–3SBio SSGJ-707 agreement is much more than a headline-grabbing licensing deal. It’s a barometer of the new power dynamics in global biotech, the maturation of Chinese innovation, and the shifting sands of late-stage asset valuation.

Key takeaways:

The bar for “breakthrough” is higher than ever – especially in immuno-oncology.
China is now central to the global innovation conversation, not just a market for Western drugs.
Licensing dynamics and valuations for late-stage Chinese assets will never be the same.

For pharma leaders, investors, and talent:

Expect more East-West alliances and fiercer global competition for both assets and scientific talent.
The future of drug development will be defined as much by cross-border partnerships as by internal pipelines.

Hiring in oncology or looking to build your commercial or R&D team for next-gen immuno-oncology?
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