CStone Pharmaceuticals (HKG: 2616) has officially responded to recent news reports regarding the suspension of manufacturing operations at its Suzhou plant. The company stated that the decision to temporarily halt operations at the Suzhou facility is aimed at reducing operating costs, as the plant is still in the trial operation stage and there is currently no demand for mass production.
Impact on Business Operations
According to CStone, its currently commercialized products are not being manufactured at the Suzhou plant. The suspension will not impact related technology transfers or other business operations, including the company’s research and development (R&D) activities and translational medicine centers in Suzhou. Core staff will be retained, and the company will actively pursue industry collaboration opportunities for the site. Additionally, CStone’s cash reserves are sufficient to support its operations for several years. The adjustment is expected to save and optimize the company’s operating costs more effectively.
Commercialized Products and Strategic Focus
CStone has commercialized four products in China, including the PD-L1 inhibitor sugemalimab, which was first approved in December 2021 for the first-line treatment of metastatic non-squamous and squamous non-small cell lung cancer (NSCLC) in combination with chemotherapy, as well as for unresectable stage III NSCLC. Other marketed products include the RET inhibitor Gavreto (pralsetinib), licensed from Blueprint Medicines; avapritinib; and ivosidenib, an IDH1 inhibitor licensed from Agios Pharmaceuticals.
Addressing Recent Developments
CStone is taking steps to counter recent negative press coverage. Earlier this year, the company initiated an internal investigation into its former deputy financial president due to unauthorized investments, leading to stricter investment rules in June. In July, Bloomberg reported that CStone was exploring strategic options, including the possibility of a buyout. Additionally, its US partner EQRx Inc. (Nasdaq: EQRX) has deprioritized US development of sugemalimab, which was licensed from CStone in a 2020 deal worth up to USD 1.3 billion.-Fineline Info & Tech
