Pfizer and Innovent Biologics have signed a global licensing and collaboration agreement worth up to $10.5bn for the research and development of a portfolio of 12 early-stage cancer medications.
The agreement covers antibody-drug conjugates with new payloads and multi-specific antibodies featuring distinct immune-engaging mechanisms.
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The portfolio consists of eight drug candidates originating from Innovent Biologics and four discovery programmes proposed by Pfizer. Both companies will co-develop and share costs for selected programmes as they progress through clinical development.
Innovent Biologics is set to lead development through Phase I using its proprietary discovery capabilities. After this initial stage, Pfizer will assume responsibility for global development activities.
Licensing and commercial terms specify that Pfizer will receive exclusive global rights to four of the medicines, along with responsibility for worldwide development costs.
For another four drugs, Pfizer will have exclusive rights outside Greater China and will cover most of the development expenses.
The remaining four programmes will be co-developed worldwide, with both companies sharing development costs, co-commercialising products in the US and Europe, and dividing profits.
Innovent Biologics will maintain rights in Greater China for these co-developed assets.
Under the financial agreement, Innovent Biologics will receive an upfront payment of $650m. The company may also be eligible for up to $9.85bn in development, regulatory, and commercial milestone payments.
Royalties of up to double-digit percentages on product sales could be paid to Innovent for each licensed product, should regulatory approvals be granted.
Profit sharing between the companies will apply to the co-developed and co-commercialised programmes in the US and Europe.
Pfizer chief oncology officer Jeff Legos said: “At Pfizer, everything we do starts with patients and the urgency to change what’s possible for people living with cancer.
“This collaboration brings together two highly complementary engines of innovation with a shared ambition to move faster, go further and deliver truly transformative medicines to patients who are waiting.
“By combining Innovent’s discovery and early clinical development with Pfizer’s global research and development and commercialisation capabilities, we have an opportunity not only to strengthen our pipeline but to accelerate the delivery of breakthroughs that can redefine standards of care and make a meaningful difference in patients’ lives.”
The companies expect the transaction to close in the third quarter, subject to the completion of required regulatory approvals.
Earlier this month, Pfizer received the European Commission’s marketing authorisation for expanding the approved Hympavzi (marstacimab) indication to treat haemophilia A or B with inhibitors in patients aged 12 years and above.
