Pfizer Inc. (PFE), a biopharmaceutical company, announced on Friday that it has entered into a strategic global licensing and collaborative agreement with Innovent Biologics to research and develop 12 early-stage cancer medicines and build a cancer pipeline.
As part of the agreement, Innovent will receive an upfront payment of $650 million and is eligible for up to $9.85 billion in payments for development, regulatory, and commercial milestones. It will also receive double-digit royalties for sales of its licensed product if approved. The deal presents a portfolio of 12 programs with eight early-stage programs from Innovent, and four discovery programs proposed by Pfizer. The companies agreed to co-develop and share costs for the select program as they advance through clinical development.
Under the collaboration, Innovent, through Phase 1, will advance these select programs using its proprietary drug discovery platform and clinical capabilities. Following the completion of Phase 1, Pfizer will assume responsibility for subsequent global developments.
According to the agreement,
-Innovent and Pfizer will co-develop four programs globally and share the development costs and co-commercialise in the United States and Europe and share the profits. Innovent will retain Greater China rights for these programs.
-Pfizer will obtain an exclusive license for four programs outside Greater China and will bear the majority of development expenses.
-Meanwhile, Pfizer will receive an exclusive global license for four programs and will also be responsible for the global development costs.
The transaction is expected to close in the third quarter of 2026, subject to the fulfilment of required regulatory approvals. PFE has traded between $23.06 and $28.75 over the last year. The stock closed Thursday's trading at $26.14, down 0.27%%.
In the overnight market, PFE is trading at $26.14.
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