US pharma giant Pfizer has entered into a collaboration deal worth up to $480 million with Chinese biopharma company CStone Pharmaceuticals to address the oncological needs in China.
CStone Pharmaceuticals is engaged in developing and commercializing immuno-oncology and precision medicines for cancer patients.
The collaboration will be formed between the Chinese firm and Pfizer’s subsidiaries Pfizer Investment and Pfizer Corporation Hong Kong.
It will involve Pfizer’s equity investment of $200 million for a 9.9% stake in CStone Pharmaceuticals. Furthermore, the US pharma giant will get the development and commercialization rights of the latter’s PD-L1 antibody sugemalimab (CS1001) in mainland China.
As per the terms of the deal, CStone Pharmaceuticals will get up to $280 million in milestone payments for sugemalimab and also additional tiered royalties. CStone Pharmaceuticals will retain all the development and commercialization rights to sugemalimab outside mainland China.
Sugemalimab is being developed for the most common cancer indications in China, which include lung, gastric and esophageal cancers, and others.
Frank Jiang – Chairman and CEO of CStone Pharmaceuticals said: “Pfizer’s investment in CStone is a statement of its confidence in the potential of our anti-PD-L1 treatment and recognition of our research and development capabilities.
“By joining forces with Pfizer and leveraging its commercialization infrastructure, we will ensure that patients across a vastly expanded number of markets in China have quicker access to our highly differentiated PD-L1 treatment.”
The Chinese pharma company will continue to lead the development into clinical trials and regulatory strategy for five selected indications.
CStone Pharmaceuticals and Pfizer have agreed to jointly select late-stage oncology assets for co-development in the Greater China market. These assets could be either from the pipeline of Pfizer or through joint in-licensing.
The parties will also work on a framework to introduce additional oncology assets to the Greater China market.
Pierre Gaudreault – Acting President of Pfizer Biopharmaceuticals Group China said: “Our company has an extensive and proud history of bringing innovative medicines to patients in China.
“This collaboration with CStone builds on that history by helping to develop a potential best-in-class PD-L1 treatment that we can commercialize upon approval. It also fosters our collaboration with a partner that has exceptional clinical development capabilities that can help us meet the clear need for novel oncology treatments in China.”