3SBIO's stock (01530.HK) surged 5.32% in intraday trading on Wednesday, following the announcement of a major licensing agreement with pharmaceutical giant Pfizer for its promising cancer drug, SSGJ-707. This deal marks a significant milestone for the Chinese biotech company, propelling it into a leading position in the race for PD-1/VEGF antibody treatments.

The licensing agreement includes a substantial upfront payment of $1.25 billion from Pfizer to 3SBIO, with the potential for additional payments of up to $4.8 billion if certain development, regulatory, and sales milestones are met. Furthermore, Pfizer plans to make a $100 million equity investment in 3SBIO upon the deal's closure, expected in the third quarter. This partnership allows Pfizer to develop, manufacture, and commercialize SSGJ-707, an antibody targeting PD-1 and VEGF for cancer treatment.

This deal positions 3SBIO as a strong contender in the competitive PD-1/VEGF antibody market. According to analysts, the agreement places 3SBIO and Pfizer near or in third place in this race, ahead of some major competitors. The substantial financial commitment from Pfizer underscores the potential of SSGJ-707, which has shown promising efficacy and safety data. With plans to initiate the first Phase 3 study in China this year, 3SBIO is poised for significant growth and increased market presence in the oncology field.