(Yicai) May 20 -- Shares in 3SBio skyrocketed today after the Chinese biopharmaceutical firm said it will grant US pharmaceutical giant Pfizer exclusive global rights, with the exception of China, to its experimental bispecific antibody for cancer treatment in a deal worth as much as USD6 billion.

3SBio’s share price [HKG:1530] surged 32.5 percent to HKD19.22 (USD2.46) while its subsidiary 3S Guojian Pharmaceutical [SHA:688336] hit its daily upper limit, jumping 20 percent to CNY39.37. Pfizer [NYSE:PFE] closed 0.74 percent higher at USD23 yesterday.

3SBio will grant Pfizer exclusive global rights, not including China, to develop, manufacture and commercialize SSGJ-707, a bispecific antibody targeting PD-1 and VEGF for cancer treatment, according to the agreement announced yesterday. The deal also includes an option for Pfizer to acquire commercialization rights in China.

The Shenyang-based company will receive an upfront payment of USD1.25 billion and is eligible for additional milestone payments of up to USD4.8 billion, plus tiered double-digit royalties on sales if the drug receives regulatory approval.

3SBio's tie-up with Pfizer has exceeded expectations in both upfront payments and milestone arrangements, according to a report by Guosheng Securities' pharmaceutical research team. This deal represents a key moment in China's pharmaceutical evolution, as the industry shifts from primarily importing drug licenses, known as licensing in, to exporting innovations, or licensing out.

"This partnership marks a significant milestone in 3SBio's international journey," the company said. "It not only validates the exceptional clinical efficacy of SSGJ-707 with international recognition but also confirms our innovation capabilities on the global stage. This collaboration will significantly enhance our position in oncology treatment worldwide while providing substantial financial returns to upgrade our research and development system."

The transaction is expected to close in the third quarter this year, subject to regulatory approvals and shareholder consent. Upon completion, Pfizer will make an additional USD100 million equity investment in 3SBio through an agreed securities subscription agreement.

Pfizer plans to manufacture the drug substance at its facility in Sanford, North Carolina and produce the final drug in McPherson, Kansas, the New York-based firm said.

SSGJ-707 is currently undergoing several clinical trials in China for non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors, with promising initial efficacy and safety data. 3SBio plans to initiate its first Phase 3 study in China this year.

Founded in 1993, 3SBio holds more than 100 national invention patents and has over 40 marketed products in the fields of nephrology, oncology, autoimmune diseases, ophthalmology and dermatology, and 30 more drugs in the pipeline.

The firm’s net profit attributable to shareholders surged 34.9 percent last year from the year before to CNY2 billion (USD277 million) while revenue jumped 16.5 percent to CNY9.1 billion (USD1.3 billion).

Editor: Kim Taylor