Pfizer's $6B Bet on PD-1/VEGF Bispecific Antibodies Signals Industry Shift

Pfizer has made a significant move in the oncology space, announcing a $6 billion licensing deal with Chinese biotech 3SBio for its PD-1/VEGF bispecific antibody, SSGJ-707. This agreement marks Pfizer's latest foray into the increasingly competitive field of dual-targeting cancer immunotherapies, following closely on the heels of similar deals by other pharmaceutical giants.

Deal Structure and Financial Implications

The licensing pact, revealed on Monday evening, involves an upfront payment of $1.25 billion from Pfizer to 3SBio. The deal structure also includes up to $4.8 billion in potential development, regulatory, and commercial milestones, as well as tiered double-digit royalties on future sales. Additionally, Pfizer will make a $100 million equity investment in 3SBio upon the deal's closing.

This substantial investment surpasses recent PD-1/VEGF deals from other companies, with BMO Capital Markets noting that the "deal seems to be priced at a premium to others" in this space. For comparison, BioNTech acquired Biotheus and its PD-1/VEGF antibody in November for up to $950 million, while Merck paid $588 million upfront to LaNova Medicines for a similar asset.

Strategic Implications and Market Position

Pfizer's move comes as part of a broader industry trend, with PD-1/VEGF bispecific antibodies emerging as a highly sought-after class of cancer therapies. The deal gives Pfizer rights to SSGJ-707 outside of China, positioning the company to compete in this rapidly evolving market segment.

However, the timing of this agreement has raised questions among industry analysts. BMO Capital Markets expressed confusion regarding Pfizer's overall strategy, particularly in light of the company's February clinical trials collaboration with Summit Therapeutics for ivonescimab, another PD-1/VEGF bispecific antibody. The analysts noted, "We are left wondering how these two separate collaborations are reconciled and whether one of the PD-1/VEGF bispecifics being pursued is differentiated vs. the other."

Clinical Development and Potential Applications

SSGJ-707 is currently being evaluated for various solid tumors, including non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors. Late-stage development of the asset is set to commence in China this year, with Pfizer likely to expand clinical trials to international markets.

The interest in PD-1/VEGF bispecific antibodies has been fueled by recent clinical successes, most notably the performance of ivonescimab in a late-stage NSCLC study where it outperformed Merck's blockbuster PD-1 inhibitor, Keytruda. This has led to a surge in development activity, with more than a dozen companies now pursuing similar therapies.

As the pharmaceutical landscape continues to evolve, Pfizer's substantial investment in SSGJ-707 underscores the potential of PD-1/VEGF bispecific antibodies to reshape cancer treatment paradigms. The coming months and years will reveal whether this bold move will pay off in the form of groundbreaking new therapies for cancer patients worldwide.