Bernstein Reaffirms Pfizer Rating After $6B Cancer Treatment Deal

Bernstein analysts reaffirmed their Market Perform rating and $30 price target for Pfizer Inc. (NYSE:PFE) on May 20, following the company’s recently disclosed $6 billion licensing deal with 3SBio Inc. to develop and market the cancer treatment SSGJ-707. While a notable venture at face value, the deal has raised questions about Pfizer’s continued collaboration with Summit Therapeutics (NASDAQ:SMMT).

The acquisition of SSGJ-707 coincides with Pfizer and Summit collaborating on clinical trials that combine Pfizer’s antibody-drug conjugates (ADCs) with Summit’s Ivosidenib (Ivo). Bernstein also emphasized the strategic importance of Pfizer’s plans to produce SSGJ-707 in the United States, which aligns with current policy debates over tariffs and domestic production of pharmaceuticals.

According to Bernstein analysts, Pfizer may have several strategic reasons for licensing SSGJ-707. These could include Pfizer and Summit Therapeutics having different goals or priorities for advancing their collaborative development initiatives. However, Pfizer Inc. (NYSE:PFE) stated that no changes are expected when asked how the 3SBio deal would impact its partnership with Summit. This suggests that even with the addition of the new asset to its oncology pipeline, Pfizer’s collaboration with SMMT will continue as planned.

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Read More: 10 Defensive Stocks Billionaire Ken Fisher Is Betting On and 10 Best Stocks to Buy According to Billionaire Steve Cohen.

Disclosure: None.