FAST NEWS: CStone drug approved for treatment of advanced non-small cell lung cancer
The Latest: Drug maker CStone Pharmaceuticals (2616.HK) announced on Tuesday its Pralsetinib, also known by the brand name Gavreto, was approved by China’s drug regulator as a first-line treatment for advanced non-small cell lung cancer.
Looking Up: The move represents the third approved application by China’s National Medical Products Administration (NMPA) for the anti-cancer drug, which is part of a class known as targeted RET inhibitors.
Take Note: Pralsetinib is facing competition from other similar drugs. One such drug, Selpercatinib, developed by rival Innovent Biologics (1801.HK), was approved for sale in China last October.
Digging Deeper: CStone is among a new generation of young Chinese companies that are bringing cutting-edge new drugs, both self-developed and licensed, to the global and China markets. Nearly all of the companies are losing money as they build up their drug portfolios, but many are also starting to record significant revenue as more of their drugs get approved. CStone is one of the more advanced companies, reporting 481 million yuan ($67 million) in revenue last year and a 903 million yuan loss.
Market Reaction: CStone shares jumped 6.2% in Hong Kong on Tuesday after the announcement to close at HK$2.59. The stock trades near the lower end of its 52-week range.
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Reporting by Doug Young
