Sansheng Pharmaceuticals (01530) signs licensing agreement with Pfizer for PD-1/VEGF bispecific antibodies (SSGJ-707)

Zhitong Finance App News, Sansheng Pharmaceutical (01530) announced that on May 19, 2025, the company, Shenyang Sansheng Pharmaceutical Co., Ltd. (Shenyang Sansheng, a wholly-owned subsidiary of the company) and Pfizer (Pfizer) have signed an exclusive license agreement. Sansheng Guojian Pharmaceutical (Shanghai) Co., Ltd. (Sansheng Guojian, a subsidiary of the company) will also join as a signatory through an enrollment agreement.

Under the license agreement, the Company and Shenyang Sansheng will grant Pfizer an exclusive license to develop, produce, commercialize and otherwise develop its breakthrough PD-1/VEGF bispecific antibody (“Licensed Product” or “SSGJ-707”) globally (excluding mainland China). The company and Shenyang Sansheng will reserve the right to develop, manufacture, commercialize and other development rights for licensed products in mainland China. Pfizer will have the option to commercialize licensed products in China.

Pfizer shall be responsible for all costs of developing and supervising all future tests of the licensed product within the licensed region.

Under the license agreement, the Group will receive an initial payment of $1.25 billion and may receive potential payments totaling up to $4.8 billion, including development, regulatory approvals and sales milestone payments. All of the above amounts are non-refundable and non-deductible. The Group will also charge a double-digit percentage gradient royalty for net product sales in licensed regions.

The licensed product is a bispecific antibody targeting PD-1/VEGF developed independently by the Group based on its proprietary CLF2 platform. It is currently conducting a number of clinical studies in China, including plans to launch a phase III clinical study approved by the Drug Evaluation Center (CDE) of the China Drug Administration for first-line treatment of PD-L1-positive locally advanced or metastatic non-small cell lung cancer (NSCLC), and has been certified as a breakthrough therapy in China. In addition, SSGJ-707 injection is undergoing a number of phase II studies in China, including first-line treatment of advanced NSCLC, metastatic colorectal cancer, and advanced gynecologic tumors in combination with chemotherapy. It also received approval from the US Food and Drug Administration for its new drug clinical trial application.

Furthermore, on the effective date, Pfizer will subscribe for the company's common stock worth 100 million US dollars (possible subscription matters) at a 30-day volume-weighted average price (subject to approval and provisions of applicable rules and regulations (including listing rules)) in accordance with the terms contained in the share subscription agreement (formal agreement). The agreement will be separately negotiated and agreed upon by the contracting parties after the date of the license agreement. The exact terms and amounts of the company's allotment and issuance of new shares to Pfizer (or its representative) will be determined and finalized in a formal agreement.