CStone Announces Completion of $200 million Share Sale to Pfizer

Rhea-AI Summary

CStone Pharmaceuticals has finalized a US$200 million share subscription agreement with an affiliate of Pfizer (PFE), enhancing their strategic collaboration announced on September 30, 2020. Pfizer will acquire approximately 115.9 million shares at HK$13.37 per share, representing about 9.90% of CStone's increased capital. This partnership aims to develop and commercialize oncology therapies in Greater China, including granting Pfizer a license for sugemalimab, CStone's key asset.

Positive

• Strategic partnership with Pfizer enhances financial backing and market potential.
• Pfizer will commercialize sugemalimab, expanding its presence in the Greater China oncology market.
• Collaboration on additional oncology assets could lead to further growth opportunities.

Negative

• None.

SUZHOU, China, Oct. 11, 2020 /PRNewswire/ -- CStone Pharmaceuticals ("CStone", HKEX: 2616) announced today the completion of the Share Subscription Agreement through which an affiliate of Pfizer Inc. ("Pfizer", NYSE: PFE) subscribed for newly issued CStone shares at approximately US$200 million (equivalent to approximately HK$1.55 billion), bringing into effect the multifaceted strategic collaboration that the companies announced on September 30, 2020.

The Listing Committee of the Stock Exchange of Hong Kong approved the listing of 115,928,803 additional shares subscribed by Pfizer at a price of approximately HK$13.37 per share. The shares represent approximately 9.90 percent of the issued share capital of CStone as enlarged by the allotment and issue of the shares.

CStone entered into the share subscription as part of a strategic collaboration framework with Pfizer to advance its strategic, commercial and financial objectives as it transitions into a fully integrated biopharma company. Completion of the share subscription allows the companies to proceed with the initiatives envisioned as part of this framework:

• CStone has agreed to grant Pfizer an exclusive license to commercialize sugemalimab, an anti-PD-L1 monoclonal antibody and one of CStone's core late-stage assets, in mainland China
• CStone and Pfizer will collaborate on the development and commercialization of additional oncology assets in the Greater China market
• CStone and Pfizer may pursue on a selected basis joint in-licensing arrangements for additional oncology assets for the Greater China market

About CStone
CStone is a biopharmaceutical company focused on developing and commercializing innovative immuno-oncology and precision medicines to address the unmet medical needs of cancer patients in China and worldwide. Established at the end of 2015, CStone has assembled a world-class management team with extensive experience in innovative drug development, clinical research, and commercialization. With a strategic emphasis on immuno-oncology combination therapies, the Company has built an oncology-focused pipeline of 15 drug candidates, including five late-stage candidates at pivotal trials or registration stages. With an experienced team, a rich pipeline, a robust clinical development-driven business model and substantial funding, CStone's vision is to become globally recognized as a leading Chinese biopharmaceutical company by bringing innovative oncology therapies to cancer patients worldwide. For more information about CStone, please visit: www.cstonepharma.com.

Forward-looking Statement
The forward-looking statements made in this article relate only to the events or information as of the date on which the statements are made in this article. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read this article completely and with the understanding that our actual future results or performance may be materially different from what we expect. In this article, statements of, or references to, our intentions or those of any of our Directors or our Company are made as of the date of this article. Any of these intentions may alter in light of future development.

View original content:http://www.prnewswire.com/news-releases/cstone-announces-completion-of-200-million-share-sale-to-pfizer-301149792.html

SOURCE CStone Pharmaceuticals

FAQ

What is the significance of the $200 million share subscription agreement between CStone and Pfizer?

The $200 million agreement enables CStone to strengthen its partnership with Pfizer, facilitating the development of oncology drugs in Greater China.

How many shares did Pfizer subscribe for in CStone Pharmaceuticals?

Pfizer subscribed for approximately 115.9 million shares of CStone Pharmaceuticals.

What percentage of CStone's issued share capital does Pfizer's investment represent?

Pfizer's investment represents about 9.90% of CStone's issued share capital after the allotment.

What will Pfizer commercialize under the strategic collaboration with CStone?

Pfizer will have the exclusive license to commercialize sugemalimab, an anti-PD-L1 monoclonal antibody, in mainland China.

When was the strategic collaboration between CStone and Pfizer announced?

The strategic collaboration was announced on September 30, 2020.