First announced in May, the deal will see 3SBio – based in Shenyang, capital of northeastern Liaoning province – receive a US$1.25 billion upfront payment from Pfizer for the exclusive right to sell its cancer drug, SSGJ-707, outside China.
Under the terms of their agreement, Pfizer will also pay 3SBio up to US$150 million to solely develop and commercialise SSGJ-707 within the mainland, the two companies said on Thursday.
Pfizer also agreed to buy 31.1 million new shares in S3Bio, or a 1.3 per cent equity stake, for HK$785 million, according to a stock exchange filing. The deal at HK$25.2055 per share represents a 17 per cent discount to its market price on Thursday.
3SBio’s shares fell 6.41 per cent to HK$28.45 on Friday.
The transaction reflected the strong momentum of Chinese biotech firms in the field of drugs research and the increased interest from major foreign pharmaceutical companies to license their intellectual property.
