Pfizer is paying Innovent $650 million upfront to partner on cancer drug development, following Bristol Myers Squibb by striking a broad pact that positions Pfizer to leverage China’s fast early development system.
The Pfizer-Innovent deal, which features up to $9.85 billion in development, regulatory and commercial milestones, supports development of 12 cancer meds. The agreement covers “a diverse portfolio of antibody-drug conjugates with novel differentiated payloads and multi-specific antibodies with differentiated immune-engaging features and unique designs,” the companies said in a May 28 post-market release.
Pfizer is proposing four discovery programs, while Innovent is contributing eight early-stage assets. Innovent will develop the programs through phase 1, beyond which Pfizer will lead global development.
BMS struck a similar deal with Hengrui Pharma two weeks ago. Like Pfizer, BMS is contributing programs to its alliance and leveraging its Chinese partner’s early drug development capabilities to hustle programs through phase 1. BMS’ deal is worth $600 million upfront and up to $15.2 billion in total.
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Pfizer will receive an exclusive global license for four programs, bearing development costs for the drug candidates. The Big Pharma will also have ex-China rights to a further four programs and be responsible for most development costs. Meanwhile, Pfizer and Innovent will co-develop the remaining four programs globally, splitting the costs. The partners will co-commercialize the jointly owned assets in the U.S. and Europe.
The Pfizer and BMS deals represent a way for Western drugmakers to gain exposure to China’s early drug development infrastructure, which has established the country as a major source of new molecules. At a TD Cowen event in March, Pfizer CEO Albert Bourla named (PDF) “the meteoric ascent” of China as one of two forces reshaping the industry, the other being artificial intelligence.
Bourla said China operates at “half the cost, three times the speed,” creating a need for Pfizer to bring its productivity up to the country’s level. Partnering on assets originated in China and putting some internal candidates through early development in the country offers one way to close the productivity gap.
For Innovent, the chance to co-commercialize four products in the U.S. and Europe offers an opportunity to expand its global reach. Innovent’s goal (PDF) for the next five years is to “become a global premier biopharmaceutical company.”
That goal speaks to a point made by Bourla, who said a playbook followed by Chinese car and battery companies shows how the country’s businesses can “conquer the market.”
