Pfizer (PFE) said late Monday it signed a licensing agreement with China's 3SBio to develop, manufacture and commercialize SSGJ-707 globally, excluding China.

SSGJ-707 is undergoing several clinical trials in China for non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors. 3SBio intends to launch the first phase 3 study in China later this year, Pfizer said.

Under the terms of the deal, 3SBio will receive an upfront payment of $1.25 billion, up to $4.8 billion in potential milestone payments, and tiered double-digit royalties on sales of SSGJ-707, if approved. Pfizer has an option of commercialization rights in China, it said.

The deal is expected to close in Q3, subject to 3SBio shareholder approval and other conditions.

Upon the deal's completion, Pfizer will make a $100 million equity investment in 3SBio, subject to an agreed upon securities subscription agreement between the parties, it said.