U.S. drugmaker Pfizer said it would license an experimental cancer treatment from China's 3SBio Inc , paying $1.25 billion upfront and up to another $4.8 billion if developmental milestones are met.

Pfizer will pay $1.25 billion upfront to license an experimental cancer drug out of China, in a deal that underscores multinational drugmakers’ growing enthusiasm for Chinese biotech innovation.

Pfizer jumps into cancer-treatment race with a $6 billion licensing deal with a China-based company, six months after Merck’s move for a lot less money.