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.

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 on Tuesday announced a cancer drug licensing deal with Chinese biotech 3SBio that includes a $1.25 billion upfront payment and $4.8 billion in potential earnouts. Pfizer also plans to invest $100 million for an equity stake.