Pfizer and Innovent Biologics Enter Strategic Collaboration Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Pfizer (PFE) and Innovent Biologics (IVBXF) announced the companies have entered into a strategic global licensing and collaboration agreement for the research and development of 12 promising new breakthrough early-stage and de novo cancer medicines. The partnership includes licensing, co-development, and co-commercialization opportunities across a diverse portfolio of antibody-drug conjugates with novel differentiated payloads and multi-specific antibodies with differentiated immune-engaging features and unique designs. The agreement spans a portfolio of 12 programs comprising eight Innovent-originated early-stage programs and four Pfizer-proposed discovery programs. The companies will co-develop and share costs for select programs as they advance these programs through clinical development. According to the agreement, Innovent will conduct development of these programs through Phase 1, powered by its proprietary discovery engine and robust early clinical capabilities, after which Pfizer will lead future global development. The agreement also sets out the following licensing and commercialization structure: Pfizer will receive an exclusive global license for four programs, and will be responsible for the global development costs; Pfizer will receive an exclusive license outside Greater China for four programs, and will be responsible for the majority of the development costs; and Pfizer and Innovent will co-develop four programs globally and share the development costs. The companies will co-commercialize in the United States and Europe, and share the profits. Innovent will retain Greater China rights to these programs. Under the financial terms of the agreement, Innovent will receive a $650M upfront payment and is eligible for up to $9.85B in development, regulatory and commercial milestone payments. Additionally, Innovent will receive up to double-digit royalties on sales of each licensed product if approved. For the 'co-developed, co-commercialized' programs, the two companies will share the profits in the U.S. and Europe. The transaction is expected to close in the third quarter subject to fulfillment of required regulatory approvals.
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Analyst Views on PFE
Wall Street analysts forecast PFE stock price to rise
16 Analyst Rating
5 Buy
11 Hold
0 Sell
Moderate Buy
Current: 26.140
Low
24.00
Averages
28.56
High
35.00
Current: 26.140
Low
24.00
Averages
28.56
High
35.00
About PFE
Pfizer Inc. is a research-based, global biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide. Its Biopharma segment includes the Pfizer U.S. Commercial Division, and the Pfizer International Commercial Division. Its product categories include oncology, primary care and specialty care. Its oncology products include Ibrance, Xtandi, Padcev, Adcetris, Inlyta, Lorbrena, Bosulif, Tukysa, Braftovi, Mektovi, Orgovyx, Elrexfio, Tivdak and Talzenna. Its primary care products include Eliquis, Nurtec ODT/Vydura, Zavzpret, the Prevnar family, Comirnaty, Abrysvo, FSME/IMMUN-TicoVac, Nimenrix, Trumenba, and Paxlovid. Its specialty care products include Xeljanz, Enbrel (outside the United States and Canada), Inflectra, Abrilada, Cibinqo, Litfulo, Eucrisa, Velsipity, the Vyndaqel family, Genotropin, and others. Its PF-08653944 is an ultra-long-acting fully biased GLP-1 receptor agonist.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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