Pfizer Signs Experimental Drug Licensing Agreement With 3SBio

Pharmaceutical giant Pfizer Inc. PFE has signed a significant licensing agreement with China's 3SBio Inc. for an experimental cancer drug, SSGJ-707. According to the deal, Pfizer will pay $1.25 billion upfront and could pay up to an additional $4.8 billion contingent upon achieving certain development milestones. Also, Pfizer plans to invest $100 million in 3SBio through an equity stake once the transaction is finalized, which is expected in third-quarter 2025.For some time now, SSGJ-707 has been undergoing clinical trials in China for several types of cancers that include non-small cell lung cancer, metastatic colorectal cancer and gynecological tumors. A Phase III trial in China is scheduled for later this year. Pfizer now has the global rights to develop, manufacture and commercialize the drug, excluding China, with an option to commercialize it within China. 3SBio has also received approval from the Food and Drug Administration (“FDA”) for its Investigational New Drug application. Pfizer plans to produce the drug substance in North Carolina and the final product in Kansas.Late last month, PFE reported first-quarter 2025 adjusted earnings of 92 cents/share, which comprehensively beat the Zacks Consensus Estimate of 64 cents/share. Earnings rose 12% year over year. Revenues came in at $13.72 billion, down 8% from the year-ago quarter on a reported basis. Revenues reflected an operational decrease of 6% and a negative currency impact of 2%. Total revenues missed the Zacks Consensus Estimate of $13.89 billion.In the United States, Pfizer has been embroiled in controversy and scrutiny following allegations that senior executives may have deliberately delayed the release of COVID-19 vaccine clinical trial results until after the 2020 U.S. presidential election. This licensing announcement comes as an excellent boost. Following the announcement, 3SBio's shares surged 35% in Hong Kong, raising the company's market valuation to nearly $6 billion.PFE currently has a Zacks Rank #2 (Buy) and has a VGM Score of A. Novartis AG NVS and AbbVie Inc. ABBV are notable competitors from the same space. NVS currently also carries a Zacks Rank #2, while ABBV is ranked #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks