CStone Pharmaceuticals (2616) Corporate Presentation summary

Business overview and achievements

• Achieved first profitability in H1 2024 with net profit of RMB 10.8 mn and total revenue of RMB 254.2 mn, supported by license fee income and cost control.

• Maintains a robust cash balance of RMB 813.9 mn as of June 30, 2024, with reduced operating cash burn.

• Commercial portfolio includes four marketed products across nine indications and five territories, with strategic partnerships for global expansion.

• Notable partnerships include Ewopharma for sugemalimab in Europe and Hengrui for avapritinib in China.

• Manufacturing localization for key products is advancing, aiming to reduce costs and ensure domestic supply.

Pipeline highlights

• Pipeline 2.0 features 18 innovative assets, including global rights to multiple ADCs, bispecific, and trispecific antibodies targeting solid tumors, hematologic malignancies, and autoimmune diseases.

• Sugemalimab (PD-L1) approved for all five indications in China and for 1L NSCLC in EU and UK, with additional global partnerships and regulatory submissions underway.

• Pralsetinib and avapritinib commercialized in China through partnerships, with avapritinib included in China’s NRDL from 2024.

• CS5001 (ROR1 ADC) in phase I trials in US, Australia, and China, showing >50% ORR in lymphoma and promising activity in solid tumors; pivotal trials planned by end of 2024.

• CS2009 (PD-1/CTLA4/VEGFA trispecific antibody) expected to enter IND in Q4 2024, targeting large solid tumor indications with first-in-class potential.

Financial and strategic outlook

• Revenue mix shifting toward license fees and royalties as commercial model transitions and product divestments occur.

• Operating expenses reduced by 53% YoY in H1 2024, reflecting stringent cost control and focus on high-value projects.

• Near-term catalysts include pivotal trial initiations, IND submissions for multiple pipeline assets, and further global partnerships for sugemalimab.

• Management team with deep industry experience from leading global pharma and biotech companies.

• Strategic focus on maximizing commercial value of marketed products and advancing innovative global pipeline.