Goldman Sachs includes CSTONE PHARMA-B (02616) CS5001 in the BD cooperation worth looking forward to in 2025.

On February 5, Goldman Sachs released a research report on the global opportunities for evaluating biotechnology pipeline assets, stating that globalization has become an inevitable trend in the biotechnology industry, with companies shifting their strategies towards innovation and collaboration, and out-licensing becoming the mainstream path. Industry consensus has shifted towards unlocking global potential through partnerships, leading to differentiation in business models among companies. Some companies focus on small and refined research and development, achieving value through collaborations, while leading companies are striving to transform into profitable biopharmaceutical companies. The report points out that global M&A transactions are increasing, indicating that global partners' recognition of Chinese biotechnology has surpassed single assets, covering research platforms and talent teams. The report introduces a framework based on three factors for screening pipeline assets with high business development potential, focusing on three aspects: 1) total addressable market size (TAM) globally; 2) competitive positioning; 3) current hotspots and trends in business development transactions. Among many innovative projects, CS5001 (ROR1 ADC), an innovative antibody-drug conjugate under CSTONE PHARMA-B (02616), has garnered significant attention. The market expects the company to announce the clinical data for CS5001 at the 2025 American Society of Clinical Oncology (ASCO) annual meeting, and actively seek partnership opportunities globally (BD partnership). Goldman Sachs believes that CS5001 is considered one of the promising BD projects in 2025, with high predictability for BD, a global TAM of $43 billion, huge potential, and evident competitive advantage for Basan Pharmaceuticals in this field, where BD partnerships are active. As a result, Goldman Sachs has raised the target price for the company and listed ROR1 and the triple antibody as core value catalysts.