How 3SBio became China’s most watched biotech firm after the Pfizer deal

Why Is 3SBio Suddenly in the Global Biotech Spotlight?

3SBio Inc. has captured international attention after signing a $6.05 billion global licensing agreement with Pfizer Inc. to develop and commercialize the oncology candidate SSGJ-707. Previously known for its China-centric biologics operations, 3SBio has now emerged as one of the most talked-about biotech firms on the Hong Kong Stock Exchange. The landmark deal has become a catalyst for its transformation from a regional biologics supplier into a globally recognized immuno-oncology innovator.

The licensing agreement grants Pfizer global rights (excluding China) to develop, manufacture, and commercialize SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, both critical pathways in solid tumor immunotherapy. Notably, 3SBio will retain Chinese rights and receive an immediate $1.25 billion upfront, with performance-based milestone payments potentially adding $4.8 billion more. The deal also includes a $100 million equity investment by Pfizer in 3SBio, signaling long-term confidence.

What Is Driving the Surge in 3SBio’s Share Price?

Following the announcement on May 19, 2025, 3SBio’s stock (HKEX: 1530) rallied over 36% in a single session, contributing to a YTD return exceeding 224%. This surge reflects investor enthusiasm not only for the cash influx and milestone potential but also for the global endorsement of 3SBio’s scientific capabilities. Pfizer’s vote of confidence has positioned 3SBio as a rare example of a China-based biotech company whose lead asset has attracted high-stakes international licensing interest at the brink of Phase 3.

Analyst sentiment quickly followed. Citi raised its price target to HKD 25, maintaining a “Buy” rating, while CICC lifted its target to HKD 21.10, calling the transaction “a global validation of 3SBio’s oncology platform.” These ratings indicate broader institutional recalibration of the company’s long-term revenue potential and strategic depth.

This is a pivotal moment for 3SBio. For years, it operated profitably but quietly, generating stable revenues from biosimilars and hospital-market biologics in China. With the Pfizer agreement, the company has demonstrated that it can develop globally relevant molecules in-house, marking a shift from being a reliable manufacturer to a potential royalty-driven pipeline leader.

What Makes SSGJ-707 a Strategic Asset?

SSGJ-707 is an investigational bispecific antibody that targets PD-1 (programmed cell death protein 1) and VEGF (vascular endothelial growth factor), two pathways frequently implicated in immune resistance and angiogenesis in solid tumors. By simultaneously targeting immune evasion and blood supply, SSGJ-707 represents a next-generation approach to immunotherapy.

The compound has already advanced through early clinical trials in China, with promising safety and efficacy signals reported in non-small cell lung cancer (NSCLC), colorectal cancer, and gynecological tumors. 3SBio plans to initiate its first Phase 3 trial in China in late 2025, which could potentially lead to multi-regional filings if supported by further bridging studies from Pfizer.

Pfizer’s decision to secure global rights at this stage—rather than waiting for Phase 3 results—underscores its belief in both the science and the operational rigor behind the program. The molecule’s dual-target modality fits well into Pfizer Oncology’s emphasis on bispecific antibodies, ADCs, and multi-pathway immunomodulators.

How Has 3SBio Evolved Over the Past Decade?

Founded in 1993 and listed on the HKEX since 2015, 3SBio initially made its mark by producing recombinant proteins and monoclonal antibodies for the Chinese healthcare system. Over time, the company began reinvesting its profits into R&D infrastructure, building two advanced research campuses in Shanghai and Shenzhen.

The shift to innovation-based revenue began in earnest around 2018, when 3SBio began accelerating internal development of novel biologics, targeting autoimmune diseases and oncology. By maintaining full control over its discovery and manufacturing pipelines, it differentiated itself from peers that relied heavily on outsourcing or early-stage licensing.

Today, 3SBio owns vertically integrated GMP-certified manufacturing sites and has recruited dozens of scientists from U.S. and European institutions to bolster its internal pipeline. This combination of financial sustainability, technical depth, and clinical discipline has laid the groundwork for partnerships with global players like Pfizer.

What Does the Sentiment and Stock Activity Tell Us?

The Pfizer licensing deal has significantly altered institutional sentiment around 3SBio. The company’s post-deal trading volume and fund inflows reflect revived interest from global healthcare investors, many of whom had pulled back from Hong Kong-listed biotech names during recent regulatory volatility in China.

Foreign institutional investors are now reevaluating the firm. Although full FII/DII ownership data are still being compiled, market desk updates suggest that multiple Asia-focused and U.S.-based biotech funds have resumed position-building in the counter post-announcement.

What makes the sentiment shift particularly notable is that 3SBio now offers an asymmetric upside profile: a strong domestic commercial business, de-risked lead asset, deep manufacturing control, and large-cap validation—all without full-scale M&A dilution.

Is This the Beginning of a New Licensing Strategy?

Beyond the headline deal, 3SBio’s management may now consider replicating the SSGJ-707 model across other molecules in its early pipeline. A licensing-led strategy—one that monetizes global rights while retaining China rights—could provide recurring cash infusions, access to external clinical networks, and global visibility without requiring massive capital raises or full-scale commercialization buildouts overseas.

If successful, this model would make 3SBio a leading platform for late-stage oncology assets in Asia, positioned to act as both originator and licensor. The Pfizer deal has already signaled to the broader biotech ecosystem that global pharma is watching for high-quality Chinese innovation. This could prompt other firms to seek similar structures or spark a competitive acquisition environment among Western suitors.

How Does This Position 3SBio Within the Broader Biotech Landscape?

This is not an isolated win. The Pfizer partnership places 3SBio alongside a handful of China-based biotech companies—such as BeiGene and Innovent—that have broken into Western pipelines through strategic alliances. Yet unlike those firms, 3SBio has not pursued dual listings or U.S. IPOs, opting instead to build value from its Hong Kong base.

Its post-deal valuation jump reflects the premium that investors are willing to place on validated immunotherapy assets with global scalability. Analysts are now watching how 3SBio allocates its post-deal capital, whether through additional licensing, pipeline acceleration, or selective regional acquisitions.

A Defining Inflection Point for 3SBio

The $6.05 billion SSGJ-707 licensing deal has elevated 3SBio from a regional biologics player to a globally credible biotech partner. With Pfizer’s backing, it has entered a rare echelon of Chinese firms that are not only competing in the innovation economy—but leading it.

The coming quarters will test its ability to scale this moment: execute on Phase 3 trials, expand its global licensing playbook, and sustain investor trust. But if early indicators are any guide, 3SBio is no longer just another biotech firm out of China. It’s a benchmark for how deep science, measured execution, and the right partner can vault a company into global relevance.