Pfizer's $6B Bet on PD-1xVEGF Bispecific: A Strategic Move in Oncology

Pfizer CEO Albert Bourla has shed light on the company's recent $1.25 billion upfront investment in 3SBio's PD-1xVEGF bispecific antibody, SSGJ-707. The deal, which could potentially reach $6 billion, marks Pfizer's entry into the increasingly competitive field of bispecific antibodies targeting PD-1 and VEGF pathways in oncology.

Rigorous Due Diligence on Chinese Data

Bourla revealed that Pfizer conducted an extensive due diligence process before finalizing the deal with 3SBio. Given the skepticism surrounding Chinese clinical data in the wake of recent developments in the PD-1/L1xVEGF sector, Pfizer took extraordinary measures to validate the data's integrity.

"We sent teams [to] China. They spent weeks. They went to the sites. They viewed the scans one after the other. They interviewed the physicians that [ran] the study," Bourla stated at a Goldman Sachs event. He emphasized that the due diligence was not limited to data room reviews but involved on-site investigations and personal meetings with 3SBio's leadership.

Strategic Fit with Pfizer's ADC Portfolio

The acquisition of SSGJ-707 is not just about adding another asset to Pfizer's pipeline; it's a strategic move to complement the company's existing antibody-drug conjugate (ADC) portfolio. Bourla highlighted the potential synergies between SSGJ-707 and Pfizer's vedotin-based ADCs, which came to the company through its Seagen acquisition.

"Vedotin has been proven that, because it creates immunogenic cell death, it has synergistic effects with PD-1s," Bourla explained. "For us to have the new, let's say, standard of immunotherapy as part of our portfolio is very strategically important given that we have all the ADCs."

Deal Structure and Market Implications

While the headline figure of $6 billion has raised eyebrows, Bourla clarified that the full amount would only be paid "if the whole thing is very successful and sells a lot." This structure suggests that a significant portion of the deal value is tied to sales milestones, reflecting both Pfizer's confidence in the asset and a prudent approach to risk management.

The move positions Pfizer firmly in the race for next-generation immunotherapies, competing with recent high-profile deals such as Bristol Myers Squibb's $11 billion agreement with BioNTech. As the pharmaceutical industry continues to invest heavily in bispecific antibodies and combination therapies, Pfizer's bet on SSGJ-707 could potentially reshape the oncology treatment landscape.