Wanlian Securities·2025-05-20 09:51Investment Rating - The industry investment rating is "stronger than the market," indicating an expected increase in the industry index relative to the broader market by over 10% in the next six months [8]. Core Insights - The licensing agreement between the specific company and Pfizer for the PD-1/VEGF bispecific antibody SSGJ-707 is expected to set a new benchmark for Chinese biopharmaceutical license-out deals, with an upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion [1][2]. - SSGJ-707 has shown promising clinical results in treating non-small cell lung cancer (NSCLC), achieving high objective response rates (ORR) and disease control rates (DCR), and has been recognized as a breakthrough therapy by the NMPA [2]. - The transaction highlights the increasing recognition of Chinese technology and products by multinational corporations (MNCs), as they seek to fill pipeline gaps due to patent expirations [2]. Summary by Sections Event Summary - On May 20, the specific company announced a licensing agreement with Pfizer for SSGJ-707, retaining rights in mainland China while granting Pfizer rights for global development and commercialization [1]. Investment Highlights - The PD-1/VEGF bispecific antibody SSGJ-707 is a focal point for multinational pharmaceutical companies due to its dual-target mechanism, showing significant anti-tumor activity and safety in clinical trials [2]. - The agreement is expected to accelerate the company's research and development efforts and enhance its ability to commercialize products internationally [2]. Market Trends - The Chinese innovative drug market is projected to grow, with a significant increase in license-out transactions, reflecting the rising importance of Chinese pharmaceutical companies in the global market [3][6].