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Pfizer Buys 9.9% Stake In CStone, Scores Exclusive Rights To Commercialize Oncological Antibody In China

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Pfizer Buys 9.9% Stake In CStone, Scores Exclusive Rights To Commercialize Oncological Antibody In China

Pfizer Inc (NYSE: PFE) is making a $200 million in Chinese company CStone Pharmaceuticals through a subsidiary, the latter announced Wednesday.

What Happened: The New York pharmaceutical company will own a 9.9% stake in CStone as a result of the investment and will gain the rights to exclusively commercialize the latter's monoclonal PD-L1 antibody sugemalimab CS1001 in China.

The antibody has completed the Phase 1 dose-escalation study and exhibited certain antitumor properties under the Phase 1a and 1b stages, according to CStone.

Development and Commercialization rights for markets outside mainland China will be retained by CStone, along with tackling clinical development and regulatory strategies.  

During the late stage, both companies will select oncology assets for co-development in Greater China either through Pfizer’s pipeline or through joint in-licensing.

Why Does This Matter: Pfizer will pay HKD 13.37 ($1.725) per share for the stake, representing a 43.8% premium over CStone's Monday closing price on the Stock Exchange of Hong Kong. CStone shares opened for trading at HKD 12.98 on Tuesday after the news of Pfizer collaboration.

The Chinese pharmaceutical company will also receive milestone payments and tiered royalties up to $280 million as part of the deal.

CStone Chairman and Chief Executive Officer Frank Jiang said he believes the company is transforming into a full-fledged biopharma company with the collaboration. 

Price Action: Pfizer shares closed 0.6% lower at $36.17 on Tuesday.

Photo courtesy: Beyond My Ken via Wikimedia

 

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