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 deal with 3SBio for the PD-1xVEGF bispecific antibody SSGJ-707, emphasizing the strategic importance of this acquisition in the context of Pfizer's oncology portfolio.

Rigorous Due Diligence on Chinese Data

Bourla revealed that Pfizer conducted extensive due diligence on the Chinese-generated data for SSGJ-707. The process involved sending teams to China for weeks, where they:

• Reviewed individual patient scans
• Interviewed study investigators
• Visited clinical trial sites

This thorough approach was deemed necessary to ensure the quality and credibility of the data, given recent industry concerns about the reproducibility of Chinese clinical trial results in global studies.

"We didn't do due diligence in a data room. We sent people on-site. We feel very comfortable. I met the CEO. They are credible guys," Bourla stated during a Goldman Sachs event.

Strategic Fit with Pfizer's ADC Portfolio

The acquisition of SSGJ-707 is seen as a strategic move to complement Pfizer's existing antibody-drug conjugate (ADC) portfolio, which was significantly bolstered by the Seagen takeover. Bourla highlighted the potential synergies between SSGJ-707 and Pfizer's vedotin-based ADCs:

"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 Potential

While the deal includes a $1.25 billion upfront payment, the total potential value of $6 billion is contingent on the success and sales performance of SSGJ-707. Bourla clarified that the full amount would only be paid "if the whole thing is very successful and sells a lot."

The acquisition positions Pfizer in the competitive race for next-generation immunotherapies, potentially displacing current PD-1/L1 checkpoint inhibitors. This move comes in the wake of other significant deals in the space, including Bristol Myers Squibb's $11 billion agreement with BioNTech for similar bispecific antibodies.