Pfizer Secures Up to $10.5 Billion Partnership with China's Innovent

Pfizer and Innovent Biologics Ink $10.5 Billion Deal to Develop Cancer Drugs

Pfizer Inc. and China's Innovent Biologics Inc. have signed a global agreement worth as much as $10.5 billion to develop cancer drugs. The agreement, announced by the companies on Thursday, includes a $650 million upfront payment and up to $9.85 billion in potential milestones.

Under the terms of the agreement, the two companies will collaborate on a portfolio of 12 oncology programs, comprising eight Innovent-originated early-stage assets and four Pfizer-proposed discovery programs. This collaboration aims to leverage Innovent's discovery and early clinical development capabilities with Pfizer's global research and development and commercialization capabilities, ultimately strengthening Pfizer's pipeline and accelerating the delivery of breakthroughs in cancer treatment.

Pfizer has been working to cut costs while building a pipeline that can propel its next era of growth. As the company's top drugs face competition and patent losses, Chief Executive Officer Albert Bourla has been actively seeking deals to help Pfizer find its next blockbuster medicines. In 2023, the company spent $43 billion on the acquisition of cancer-drug maker Seagen Inc., and earlier this year, Pfizer signed a commercialization deal with Chinese company Hangzhou Sciwind Biosciences Co. for an obesity therapy called ecnoglutide.

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Innovent has a strong reputation for developing cancer drugs, including Tyvyt, a PD-1 inhibitor approved in China to treat eight different types of cancer. The company also received approval in China last year for an obesity drug called mazdutide, rivaling popular shots made by Eli Lilly & Co. and Novo Nordisk A/S.

Pfizer's Recent Acquisitions and Partnerships

In addition to the partnership with Pfizer, Innovent has a long-standing relationship with Lilly, having announced a strategic collaboration in February to advance new medicines in oncology and immunology. Under the terms of that agreement, Innovent would receive a $350 million upfront payment and is eligible to receive development, regulatory, and commercial milestone payments totaling up to about $8.5 billion. Innovent has also signed licensing agreements with Roche Holding AG and Takeda Pharmaceutical Co.

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