China-based CStone Pharmaceuticals (HKG: 2616) is evaluating strategic options, including a potential buyout, according to Bloomberg. The firm has enlisted Goldman Sachs to explore market interest, with sources indicating openness to a full takeover or sale of a controlling stake. This follows I-Mab’s reported exploration of suitors in April, marking the second major Chinese biotech to consider a sale in recent months.
Company Background
CStone, a prominent Chinese biotech, secured its second NSCLC approval for PD-L1 inhibitor sugemalimab (Cejelmy) in June. It markets three licensed products: Blueprint Medicines’ Gavreto (pralsetinib) and Ayvakit (avapritinib), and Servier’s ivosidenib. Major partnerships include a $200 million Pfizer investment in 2020 for sugemalimab’s China commercial rights and a 2020 deal with EQRx for ex-Greater China development.
Challenges and Internal Issues
Domestically, CStone faces intense competition, while U.S. prospects for its immunotherapies may be clouded by FDA policies rejecting China-only trial data. Sugemalimab’s approvals relied on China-only Phase III trials GEMSTONE-301/302. Internally, an unauthorized investment by a former VP led to CEO/chairman Dr. Frank Jiang losing his chair role, with WuXi AppTech installing a replacement.-Fineline Info & Tech
