Shanxi Securities Company Limited has issued a research report initiating coverage on 3SBIO (01530) with a "Buy-B" rating. The firm projects revenues of RMB 174.56/107.46/113.35 billion for 2025-2027, with net profit attributable to shareholders of RMB 82.89/28.60/31.63 billion respectively, corresponding to P/E ratios of 8.1/23.4/21.2.

The company has 30 products in development, with its core pipeline asset SSGJ-707, a PD-1/VEGF bispecific antibody, having its global rights licensed to Pfizer. The deal includes an upfront payment of $1.5 billion ($1.4 billion in cash plus $100 million in equity subscription), potential milestone payments of $4.8 billion, and double-digit tiered sales royalties.

**SSGJ-707 Positioned as Potential Cornerstone Cancer Drug**

PD-(L)1 therapy represents one of the foundational treatment approaches in oncology, with the global PD-(L)1 monoclonal antibody market expected to reach $99 billion by 2029. PD-1/VEGF bispecific antibodies offer synergistic inhibition of both angiogenesis and immune checkpoints, potentially providing superior efficacy compared to PD-(L)1 monoclonal antibodies alone.

SSGJ-707 features a tetravalent structure as a PD-1/VEGF bispecific antibody, with PD-1 binding affinity enhanced 100-fold in the presence of VEGF. Its unique IgG4 Fc design is expected to reduce immune-related adverse effects.

SSGJ-707 has demonstrated excellent clinical efficacy and safety profiles, showing outstanding performance in NSCLC and CRC. In NSCLC patients, 10mg/kg SSGJ-707 monotherapy resulted in grade ≥3 treatment-related adverse events (TRAEs) in 23.5% of patients, with treatment discontinuation due to TRAEs occurring in only 2.9% of cases.

Pfizer brings extensive experience in multispecific antibody clinical development, commercialization capabilities across multiple solid tumors, and complementary ADC (antibody-drug conjugate) assets for potential combinations.

SSGJ-707 is currently in Phase III clinical trials for NSCLC in China, with ongoing clinical studies in colorectal cancer and gynecological tumors. Global clinical development led by Pfizer plans to combine SSGJ-707 with ADCs and other agents for treating lung, gastrointestinal, and urogenital cancers. The global potential patient population is approximately 3 million (compared to 1.4 million for PD-1 therapy), with 350,000 patients in the United States alone, positioning the potentially best-in-class SSGJ-707 to become a cornerstone cancer therapy.

**SSGJ-707 Demonstrates Breakthrough ORR Efficacy in First-line NSCLC Phase II Trials**

While PD-(L)1 monotherapies show limited response rates in NSCLC patients with low PD-1 expression, SSGJ-707 has demonstrated promising efficacy in NSCLC patients with low PD-L1 expression.

In first-line PD-L1-positive NSCLC patients without EGFR/ALK mutations (n=34), SSGJ-707 monotherapy achieved a confirmed objective response rate (cORR) of 64.7%. For patients with PD-L1 TPS 1-49% and ≥50%, the ORRs were 62% and 77%, respectively.

In first-line NSCLC patients without EGFR/ALK mutations, SSGJ-707 combined with chemotherapy achieved ORRs of 81.3% and 58.3% in squamous and non-squamous NSCLC, respectively.

**SSGJ-707 Shows Breakthrough ORR Efficacy in Later-line CRC Phase II Trials**

While PD-(L)1 monotherapies demonstrate limited response rates in microsatellite stable (MSS) CRC, SSGJ-707 monotherapy has shown promising ORR efficacy in later-line CRC treatment.

In third-line or later RAS-mutated or BRAF-mutated non-MSI-H/pMMR colorectal cancer patients, SSGJ-707 treatment achieved an ORR of 33.3%.