Core Viewpoint - The Hong Kong stock market experienced a significant surge in the biopharmaceutical sector, particularly driven by 3SBio's collaboration with Pfizer, marking a major milestone for Chinese biotech companies [1][3][5]. Group 1: Company Developments - 3SBio announced a global licensing agreement with Pfizer for its innovative PD-1/VEGF bispecific antibody SSGJ-707, excluding China, which includes an upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion, along with tiered double-digit royalties on net sales [5][7]. - The collaboration is considered the largest licensing deal for a Chinese biotech firm to date, reflecting growing investor confidence in the innovation quality of the industry [1][3]. - Following the announcement, 3SBio's stock surged by over 40%, reaching a historical high of HKD 22, prompting analysts to raise the target price from HKD 13 to HKD 21 [3][7]. Group 2: Industry Trends - The trend of licensing-out models in China's innovative drug sector is rapidly increasing, with significant deals being made, such as the recent agreements between Hengrui Medicine and Merck, and Bayer with Suzhou Purui Medicine [9][10]. - In 2024, the total value of pharmaceutical business development transactions in China reached $64.08 billion, with outbound transactions accounting for $57.75 billion, indicating China's growing importance in the global pharmaceutical market [10]. - The first quarter of 2025 saw 231 global transactions totaling approximately $67.5 billion, with China contributing 75 transactions worth $36.9 billion, reflecting a 34% increase in transaction volume year-on-year [10].