Goldman Sachs and Jeffries are both optimistic about CSTONE PHARMA-B (02616): The efficacy signal of CS2009 continues to strengthen, and key catalysts are expected to be realized intensively.

Recently, major international financial institutions Jefferies and Goldman Sachs have each issued research reports expressing optimism about the development prospects of CSTONE PHARMA-B (02616). The core logic points to the continuous improvement of clinical data from the company's key self-developed pipeline CS2009, opportunities for business development (BD) abroad, the upcoming intensive global Phase III multi-regional clinical trials (MRCT) to be launched by the end of the year, and the company's high-quality operational performance in the first half of the year. Jefferies maintains a "buy" rating with a target price of HKD 20.00 (representing a 214% upside from the closing price of HKD 6.37 before the report was released); Goldman Sachs raised its 12-month target price from HKD 9.44 to HKD 9.85 (providing a 67.2% upside from the closing price of HKD 5.89 on August 28) and increased the success probability (PoS) for CS2009 to 68%. CStone Pharmaceuticals recently announced the latest I/II phase clinical data for its tri-specific antibody CS2009 (PD-1/VEGF/CTLA-4 TsAb) through August 2026, with over 300 patients enrolled so far, maintaining good safety characteristics: the incidence of grade 3 or higher immune-related adverse events (irAEs) remains low, and grade 3 or higher VEGF-related adverse events are about 5%. Goldman Sachs noted in its report that the latest clinical data further solidifies its differentiated advantages. As the core asset of CStone Pharmaceuticals Pipeline 2.0, CS2009 shows continuous strengthening of efficacy across multiple cohorts as the sample size increases and follow-up time extends. Specifically, in the frontline treatment of lung cancer, the overall objective response rate (ORR) in the first-line PD-L1 TPS50% NSCLC monotherapy cohort reached 83.3% (20/24, with consistent performance in squamous and non-squamous populations), surpassing the 81% reported at the 2026 ASCO Annual Meeting. Notably, in the 30mg/kg dosage group, all 11 patients achieved a response, resulting in a 100% ORR (11/11), maintaining a strong clinical competitiveness compared to the approximately 60%-77% level of existing PD-1/VEGF dual antibodies and the historical data of around 45% for pembrolizumab monotherapy. Furthermore, in the first-line PD-L1 TPS1% NSCLC monotherapy, the combined ORR for the 20mg/kg and 30mg/kg dosage groups reached 62% (29/47), with the ORR for the 30mg/kg single dosage group at 71% (17/24), again demonstrating outstanding competitive advantages (in comparison to 50% for Ivorolisumab and 68% for SSGJ-707). In terms of later-line treatment and refractory tumor types, the ORR in the 30mg/kg dosage group for the second-line and above NSCLC monotherapy cohort improved to 28% (7/25), an improvement over the 24% reported at ASCO26. In the cold tumor cohort, the overall anti-tumor activity of CS2009 also remained stable, with the ORR for metastatic colorectal cancer (mCRC) at 20%, soft tissue sarcoma (STS) at 38.5%, and non-clear cell renal cell carcinoma (nccRCC) at 43%. Goldman Sachs expects that the next 6 to 12 months will be a critical period for CStone Pharmaceuticals, with multiple key catalysts expected to materialize. At the upcoming ESMO 2026 conference, the company will present two oral reports (Oral Presentations) on the monotherapy and combination chemotherapy data for CS2009 in NSCLC (Abstract No. 2616RO) and mCRC (Abstract No. 1953RO). Management revealed that the first-line NSCLC combination chemotherapy cohort is expected to showcase over 30 patients in a typical proof of concept (POC) sample. As the data matures, it is anticipated to align with the mature response levels of competing products ranging from 70% to 90%. Based on abundant clinical evidence, CStone Pharmaceuticals has finalized a global late-stage development roadmap and plans to initiate global Phase III MRCT trials within the year, with the first batch including a registration trial for first-line AGA-negative NSCLC (combination chemotherapy regimen). Jefferies stated that this intensive key clinical advancement will strongly support the global registration and BD potential of CS2009. Goldman Sachs also mentioned that discussions around business development (BD) for CS2009 are ongoing, positioning it as a core pillar for subsequent commercial cooperation in the global clinical framework for next-generation tumor immunotherapy. At the same time, the company's early-stage ADC pipeline is progressing steadily. As the first product from its self-developed ADC platform, the EGFR/HER3 dual antibody ADC (CS5007) completed the dosing of its first patient in a global multi-center Phase I trial in June 2026, marking the formal entry of the proprietary platform into the clinical stage. Goldman Sachs advises investors to closely monitor subsequent research developments in this pipeline. Regarding financial fundamentals, CStone Pharmaceuticals achieved operating revenue of RMB 205 million in the first half of 2026, a substantial increase of 315% year on year, primarily driven by the volume boost after pralsetinib was included in the National Reimbursement Drug List (NRDL). Due to the development of more clinical pipelines, research and development expenses for the first half of the year amounted to RMB 206 million. Jefferies emphasized that by the end of the first half, the company had cash reserves of RMB 1.56 billion, and the ample cash on hand will provide solid support for the intensive global MRCT advancement and commercialization efforts, maintaining a positive outlook on its long-term revaluation potential. It is worth noting that CStone Pharmaceuticals has been included in the Hang Seng Composite Index as of August 2026, with the change officially taking effect on September 7. The Hang Seng Composite Index is one of the important benchmark indices in the Hong Kong stock market, and inclusion in this index reflects the capital market's high recognition of the company's market capitalization, liquidity, and fundamentals. With the effective adjustment of the Hang Seng Composite Index constituents, CStone Pharmaceuticals will subsequently become a viable investment target for Stock Connect, helping to broaden the investor base and enhance the liquidity and valuation levels of its shares. Source: Goldman Sachs "CStone Pharma (2616.HK): Earnings Review" (August 31, 2026); Jefferies "CStone: CS2009 to Update in ESMO; Global MRCTs in 1L NSCLC & CRC Planned by YE26" (August 28, 2026)