CStone Pharmaceuticals Reports 2022 Annual Results and Business Updates

The total revenue for 2022 was RMB 481.4 million,with commercial revenue of RMB 394.1 million,which represents a 142% increase compared to the previous year

Healthy financial position with cash reserves of RMB 1.042 billion as of December 31,2022. The net loss has decreased by 55% from the previous year

Two new products successfully launched including TIBSOVO® (ivosidenib) and CEJEMLY® (sugemalimab). Together with GAVRETO® (pralsetinib) and AYVAKIT® (avapritinib),we now have four products in the market as of the end of 2022

Five NDA approved in 2022 and five new NDAs accepted for review,including sugemalimab for first-line stage IV NSCLC under review by U.K. and E.U. regulatory agencies,MHRA and EMA,respectively

CS5001 (ROR1 ADC) is currently in Phase I clinical trial in the United States,Australia,and mainland China,with preliminary data anticipated before the end of 2023.

SUZHOU,China,March 15,2023 -- CStone Pharmaceuticals ("CStone",HKEX: 2616),a leading biopharmaceutical company focused on research,development,and commercialization of innovative immuno-oncology therapies and precision medicines,today reported 2022 full-year financial results and recent business updates.

Dr. Jason Yang,CEO of CStone,commented,"In 2022,CStone achieved significant milestones in commercialization,with a substantial increase of 142% in commercial revenue and a near doubling of total revenue,and ended the year with a solid cash position. We have also made significant progress to develop our clinical pipeline towards regulatory approvals and commercial launches globally.

In 2022,we launched two new products,TIBSOVO® (ivosidenib) and CEJEMLY® (sugemalimab). Together with GAVRETO® (pralsetinib),AYVAKIT® (avapritinib) that were launched in 2021,we have four commercial products in the market that are expected to generate significant revenues in coming years.

We have continued to accelerate our clinical development and commercialization process. Since 2022,we have obtained five NDA approvals for three products,and five new NDAs currently under review,including sugemalimab for first-line stage IV NSCLC in the United Kingdom (U.K.) and the European Union (E.U.).

Global expansion is a critical part of our strategy to realize the full potential of our pipeline. To achieve this,we have made solid progress in our global strategic partnerships to facilitate drug development and commercialization. This highlights the global commercial value of our pipeline and international recognition of our innovative R&D capabilities.

We are conducting a phase I clinical trial for our potential best-in-class ROR1-targeting ADC,CS5001,in the U.S.,and mainland China. We plan to release preliminary data by the end of the year and are exploring collaboration opportunities with overseas companies.

Over ten discovery projects are in progress,including multi-specifics,antibody-drug conjugates,and a proprietary platform for drugging intractable intracellular targets.

Moving forward,we will continue to leverage our industry-leading clinical development capabilities and utilizing multiple innovation sources to further build up our pipeline,accelerate drug development and bring innovative medicines to China and global markets,and at the same time realizing value for our various stakeholders."

BUSINESS HIGHLIGHTS

2022 has been a fruitful year for CStone with milestones across our evolving pipeline and business. Our commercial successes,including the launch of two First-in-Class ("FIC")/Best-in-Class ("BIC") therapies,put us in an elite tier of innovative biopharmaceutical companies from China as we now have four products in market and generating recurring revenue to provide financial strength and fund further growth initiatives. For the year ended December 31,2022 and as of the date of this announcement,significant progress has been made with respect to our product pipeline and business operations. A shortlist of our achievements over this period includes:

– RMB481.4 million in total revenue,including RMB394.1 million in commercial revenue which is composed of RMB364.3 million in sales of our precision medicines and RMB29.8 million in royalty income of sugemalimab

– Two new products launched: sugemalimab and ivosidenib,bringing us to a total of four products commercially launched and generating sales

– Five NDA approvals obtained for three products: sugemalimab for stage III non-small cell lung cancer ("NSCLC") in mainland China,ivosidenib for isocitrate dehydrogenase 1 ("IDH1")-mutant relapsed/refractory acute myeloid leukemia ("R/R AML") in mainland China,pralsetinib for rearranged during transfection ("RET")-mutant medullary thyroid cancer ("MTC") & RET fusion-positive thyroid cancer ("TC") in mainland China,pralsetinib for RET fusion-positive NSCLC in Hong Kong,and pralsetinib for RET fusionpositive NSCLC,RET-mutant MTC & RET fusion-positive TC in Taiwan,China

– Additional five NDAs currently under review: pralsetinib for first-line treatment of RET fusion-positive NSCLC in mainland China,sugemalimab for relapsed or refractory extranodal natural killer/T-cell lymphoma ("R/R ENKTL") in mainland China,sugemalimab for first-line stage IV NSCLC in the United Kingdom ("U.K."),sugemalimab for first-line stage IV NSCLC in the European Union ("E.U."),and sugemalimab for first-line gastric adenocarcinoma/gastroesophageal junction adenocarcinoma ("GC/GEJ") in mainland,China

– Five positive topline data readouts for sugemalimab in various indications: R/R ENKTL,first-line stage IV NSCLC,stage III NSCLC,first-line GC/GEJ and first-line esophageal squamous cell carcinoma ("ESCC")

– Eleven data presentations/publications at/on global academic conferences/top-tier medical journals

– Three key clinical programs commenced: the first-in-human ("FIH") global study of CS5001 (ROR1 ADC) in the United States of America ("U.S.") and Australia,first-patient-dosed in the pivotal study of lorlatinib for ROS1-positive advanced NSCLC in mainland China and enrolment completed for global phase III trial of nofazinlimab in combination with LENVIMA®(lenvatinib) in first-line advanced hepatocellular carcinoma ("HCC")

– Over ten discovery projects in progress,antibody drug conjugates,

and a proprietary platform for drugging intractable intracellular targets; one pre-clinical candidate ("PCC") declared for a potential FIC/BIC immuno-oncology tri-specific antibody against PD-L1,VEGF plus another immuno-oncology ("IO") target

– Further advanced our strategic partnerships with Pfizer,Hengrui and EQRx through clinical development,regulatory registrations and commercial launches

– Achieved the technology transfer submission to Center for Drug Evaluation ("CDE") of National Medical Products Administration ("NMPA") for avapritinib and the technology transfer for pralsetinib is in progress smoothly

I. Multiple Product Launches and Continued Robust Commercial Efforts

Highlights and details on our commercial activities as of the date of this announcement are as follows:

Steady and Continued Ramp Up in Product Sales

We generated overall net sales of RMB364.3 million in 2022 on the basis of a steady growth in the total product sales of GAVRETO®(pralsetinib) and AYVAKIT®(avapritinib),as well as a successful launch of TIBSOVO®(ivosidenib).

Achieved Successful Launches of New Products and Indications

We expanded the number of in-market products and indications they cover with effective launches that position them to become meaningful future contributors to revenue.

– TIBSOVO®(ivosidenib): Launched in mainland China,with 100% channel availability in major target hospitals and pharmacies.

– GAVRETO®(pralsetinib): The indications of advanced or metastatic RET-mutant MTC and RET fusion-positive TC were launched in mainland China. Also,the indication of RET fusion-positive metastatic NSCLC was launched in Hong Kong,

China.

– CEJEMLY®(sugemalimab): A new indication was successfully launched in mainland China for the treatment of patients with unresectable stage III NSCLC whose disease has not progressed following concurrent or sequential platinum-based chemoradiotherapy.

Expansion of sales force coverage in key markets for prescriptions of precision drugs

We have specifically focused our efforts on ensuring dedicated sales force coverage and successfully expanded our coverage to approximately 800 hospitals in over 180 cities as of the date of this announcement,up from 600 in 2021,accounting for approximately 75-80% of the relevant market for precision medicines where we believe we can maximize the return on our sales efforts.

Formed a precision diagnostics ecosystem with key stakeholders to facilitate patient identification and support prescriptions

– We have signed collaboration agreements with top gene sequencing companies to further improve the testing rate for RET mutation in NSCLC/TC,platelet-derived growth factor receptor alpha ("PDGFRA") exon 18 mutation in gastrointestinal stromal tumor ("GIST") and IDH1 mutation in AML,with education sessions covering over 5,000 pathologists and clinicians.

– We have strengthened partnership with National Pathology Quality Control Center ("PQCC") to standardize testing process and improve testing accuracy,with number of participating hospitals increasing by 60%.

– We expanded financial support programs to RET mutation testing in MTC patients and IDH1 mutation testing in AML patients from only RET mutation in NSCLC patients before,covering approximately 1,000 patients.

Established broad industry and academic awareness of our brand and scientific leadership

– GAVRETO®(pralsetinib),AYVAKIT®(avapritinib) and TIBSOVO®(ivosidenib) were included in 20 of China's national guidelines for testing and treatment in multiple therapeutic areas,such as NSCLC,TC,GIST and AML indication,etc. The newly included guidelines include 2022 CSCO Primary Lung Cancer Guideline,2022 CSCO MTC Clinical Guideline,2022 CSCO Hematologic Malignancy Guideline,2022 China Anti Cancer Association ("CACA") Hematological Oncology Guideline,2022 Chinese Guideline for Diagnosis and Treatment of Systemic Mastocytosis in adults,etc.

– We engaged in close collaboration with several industry associations – CSCO,CACA,Chinese Medical Association,Chinese Medical Doctor Association etc.,– on diagnosis and treatment standardization projects for GIST,NSCLC and hematological malignancies,further strengthening our industry connections and demonstrating our expertise.

– We enhanced awareness and endorsement of our products among key opinion leaders ("KOLs") and healthcare professionals ("HCPs") via proactive engagement and constant education. As of the date of this announcement,we have held over 160 academic meetings and events reaching over 50,000 leading KOLs and HCPs,resulting in improved brand perception and product adoption within the healthcare community of our treatments.

– We initiated or sponsored leading KOLs in post-approval clinical projects such as investigator-initiated trials and real-world studies to generate additional data in multiple cancer indications which may support the adoption of our drugs. We funded nine studies in collaboration with non-profit academic institutions. In particular,two real-world studies and one investigator-initiated trial have reached milestones,including the finalization and publication in 2022 CSCO of the clinical study report of pralsetinib for the treatment of NSCLC in Bo'ao with all patients benefiting from treatment and duration of therapy ("DOT") is more than 12 months,and the activation of thirteen sites for avapritinib study for the treatment of GIST and three top hematology hospitals for the treatment of R/R AML with KIT D816V mutation. In addition,we also observed the data from pool analysis of avapritinib in GIST with exon 17/18 mutations have obvious benefits compared with standard treatment.

Developing a range of approaches to promote accessibility and affordability of our drugs

– We have updated our pricing strategy for our in-market products. Specifically,the patient assistance program ("PAP") scheme of GAVRETO®(pralsetinib) was updated to support the long-term treatment of the patients. We adjusted the listing price of AYVAKIT®(avapritinib) and launched new PAP to improve affordability for GIST patients. We launched PAP for TIBSOVO®(ivosidenib) to increase affordability and DOT.

– We secured inclusion of AYVAKIT®(avapritinib),GAVRETO®(pralsetinib) and TIBSOVO®(ivosidenib) in 130 of the major commercial and government insurance programs covering more than 90 million population,up from over 60 million population as disclosed in our 2021 annual results announcement.

– We continued strategic collaboration with Sinopharm Group Co.,Ltd ("Sinopharm") and formed new partnership with Shanghai Pharmaceuticals Holding Co.,Ltd ("SPH") to broaden hospital and pharmacy distribution coverage for GAVRETO®(pralsetinib),AYVAKIT®(avapritinib) and TIBSOVO®(ivosidenib). As of the date of this announcement,AYVAKIT®(avapritinib),GAVRETO®(pralsetinib) and TIBSOVO®(ivosidenib) have been listed in approximately 220 hospitals and direct-to-patient pharmacies ("DTPs"),up from approximately 100 in 2021.

– We continued strategic collaboration with three of the largest integrated innovative healthcare service platforms in mainland China – Shanghai Meditrust Health Co.,Ltd.,Beijing Yuanxin Technology Group Co.,and Medbanks Health Technology Co.,Ltd. – to improve distribution and affordability of GAVRETO®(pralsetinib),AYVAKIT®(avapritinib) and TIBSOVO®(ivosidenib) by facilitating enrolment in city insurance programs.

Continued patient education and support,for retention and long-term medication

We made continuous efforts in patient support via online patient communities and offline education sessions to improve patient retention and DOT. As of the date of this announcement,our online platform has over 5,000 subscribers and published over 200 patient stories and information. We held 130 patient education sessions,covering 15,000 potential patients.

Collaborating with global strategic partners to support global launches of IO backbone drugs

– We are closely collaborating with our partners Pfizer on the commercialization of sugemalimab in mainland China.

– For the launch readiness in China,we worked together with Pfizer to sign off all commercial agreements and set up ordering process and commercial/PAP goods supply. In addition,we have opened distributor accounts and supported bidding progress to ensure patient accessibility upon the NDA approval.

– In 2022,sugemalimab has been recommended in the 2022 Chinese Society of Clinical Oncology ("CSCO") Non-Small Cell Lung Cancer guideline and 2022 CSCO Immunotherapy guideline for the treatment of stage III and stage IV NSCLC patients. In addition,sugemalimab has also been included in Ctong Stage III NSCLC Diagnosis and Therapy Expert Consensus and 2022 Chinese Medical Association guideline for clinical diagnosis and treatment of lung cancer.

– With EQRx,we are working closely on development and regulatory strategies for sugemalimab outside of greater China,including the U.K. and the E.U.,as well as additional regions. The global market size of PD-(L)1 for the treatment of NSCLC,gastric and esophageal cancers is forecasted to be approximately US$30 billion in 2026.

II. Innovation,High Quality and Rapid Execution Lead to Advances across an Evolving Pipeline

CStone followed through on an aggressive clinical agenda with further developments across its pipeline. As of the date of this announcement,we have secured five NDA approvals and submitted seven NDA filings as we rounded out our diverse and evolving pipeline of in-market and near-commercial ready drugs. In doing so,our clinical engine once again distinguished itself in terms of innovation,speed,and quality,as evidenced by the facts that it took only six months for ivosidenib from NDA acceptance to NDA approval,and we had eleven data presentations/publications at/on global academic conferences/top-tier medical journals.

Details are as follows:

Sugemalimab (CS1001,PD-L1 antibody),became the first anti-PD-1/PD-L1 monoclonal antibody approved for both stage III and stage IV NSCLC in China.

– In May 2022,we received the NDA approval from the NMPA for the treatment of patients with unresectable stage III NSCLC whose disease has not progressed following concurrent or sequential platinum-based chemoradiotherapy. Sugemalimab became the first anti-PD-1/PD-L1 monoclonal antibody approved in this patient population.

– In May 2022,we announced that the final progression-free survival ("PFS") analysis of the registrational GEMSTONE-301 study further demonstrates sugemalimab's robust efficacy and significant clinical benefits shown in interim analysis in stage III NSCLC patients. In August 2022,we presented the detailed results at World Conference on Lung Cancer ("WCLC") 2022.

– In September 2022,we received the NDA acceptance from the NMPA for the treatment of patients with R/R ENKTL with priority review granted.

– In January 2022,we announced that the registrational GEMSTONE-201 study for R/R ENKTL met the primary endpoint and demonstrated a complete response ("CR") rate significantly exceeding that of the currently available targeted monotherapy for these patients. We presented the topline results in an oral abstract session at American Society of Clinical Oncology ("ASCO") 2022.

– In February 2023,we received the NDA acceptance from the NMPA for the first-line treatment of patients with locally advanced or metastatic GC/GEJ.

– In November 2022,we announced that the GEMSTONE-303 study for first-line treatment of patients with unresectable locally advanced or metastatic GC/GEJ has met its PFS primary endpoint. Sugemalimab in combination with chemotherapy demonstrated statistically significant and clinically meaningful improvement in PFS,compared with placebo plus chemotherapy.

– In January 2022,we completed enrolment for two key phase III registrational clinical trials,one for the first-line treatment of unresectable locally advanced or metastatic GC/GEJ,and the other for the first-line treatment of unresectable locally advanced,recurrent,or metastatic ESCC.

– In January 2022,we announced that the pre-specified overall survival ("OS") interim analysis showed sugemalimab in combination with chemotherapy significantly and clinical meaningfully improved the overall survival in stage IV NSCLC patients,and the data has been presented at ASCO 2022. The positive OS data will be used for global fillings.

– In January 2023,we announced that the GEMSTONE-304 study for first-line treatment of unresectable locally advanced,or metastatic ESCC,has met its primary endpoints. Sugemalimab in combination with chemotherapy demonstrated a statistically significant and clinically meaningful improvement in PFS and OS compared with placebo in combination with chemotherapy.

– For the markets outside of Greater China,we are working closely with EQRx on discussions for regulatory submissions for indications in stage IV NSCLC and other indications in multiple countries and regions.

In December 2022,the marketing authorization application ("MAA") filing for sugemalimab in combination with chemotherapy as the first-line treatment of patients with metastatic NSCLC was accepted for review by the Medicines and Healthcare products Regulatory Agency ("MHRA") in the U.K.. This is the first MAA submission of sugemalimab outside of China.

In February 2023,the MAA filing for sugemalimab in combination with chemotherapy as first-line treatment of patients with metastatic NSCLC has been accepted for review by European Medicines Agency ("EMA").

Nofazinlimab (CS1003,PD-1 antibody)

– In March 2022,we completed enrolment for the global phase III trial of nofazinlimab in combination with LENVIMA®(lenvatinib) in first-line treatment of patients with advanced HCC.

– In June 2022,we presented the results from the phase Ib study of nofazinlimab combined with lenvatinib as first-line treatment in Chinese HCC patients at ASCO 2022.

Pralsetinib (CS3009,RET inhibitor) – We have secured three NDA approvals and have one NDA filing currently under review.

– In March 2022,we received the NDA approval from the NMPA for the treatment of patients with advanced or metastatic RET-mutant MTC and RET fusion-positive TC.

– In July 2022,we received the NDA approval from the Hong Kong Department of Health ("HK DoH") for the treatment of patients with RET fusion-positive locally advanced or metastatic NSCLC.

– In January 2023,we received the NDA approval from the Taiwan Food and Drug Administration ("TFDA") for the treatment of patients with RET fusion-positive locally advanced or metastatic NSCLC,and advanced or metastatic RET-mutant MTC and RET fusion-positive TC.

– In October 2022,we received the NDA acceptance from the NMPA for the first-line treatment of patients with RET fusion-positive locally advanced or metastatic NSCLC who have not been previously treated with systemic therapy.

Ivosidenib (CS3010,IDH1 inhibitor) – We have secured our first NDA approval for this product.

– In January 2022,we received an NDA approval from the NMPA for the treatment of adults with R/R AML with an IDH1 mutation.

– In October 2022,we received Pediatric and Minority Serious Disease Designation from TFDA for IDH1-mutated R/R AML in adults.

Lorlatinib (ALK/ROS-1 inhibitor)

– We are working with Pfizer to jointly develop lorlatinib for c-ros oncogene 1 ("ROS1")-positive advanced NSCLC in Greater China. In May 2022,we enrolled the first patient in the pivotal study of lorlatinib for the treatment of ROS1- positive advanced NSCLC. The enrolment continues at a steady pace.

CS5001 (LCB71,ROR1 ADC)

– After obtaining an approval of the IND application from the U.S. FDA and approval from the Australia Ethics Committee ("EC"),the FIH study of this potential best-in-class receptor tyrosine kinase-like orphan receptor 1 ("ROR1") antibody-drug conjugate ("ADC") has shown swift recruitment to the dose-escalation part in both countries. Additionally,we submitted an IND application to the NMPA in March 2022 and received the approval in May 2022. To enable biomarker-driven patient selection based on tumor ROR1 expression,we have identified candidate ROR1 antibody clones for immuno-histochemistry ("IHC") to support such precision medicine effort in the future.

CS2006 (NM21-1480,PD-L1/4-1BB/HSA tri-specific molecule)

– The FIH study is ongoing and includes sites in the U.S. and Taiwan. The dose-scalation part of the study has been completed,and the maximum tolerated dose ("MTD") was not reached; preliminary data from the dose escalation part was presented at the Society of Immunotherapy Cancer ("SITC") 2022,which indicated a benign and differentiated safety profile with no notable liver toxicities; an unconfirmed Partial Response was observed in a colorectal cancer subject; meanwhile,full 4-1BB agonism was observed across a broad dose range providing complete inhibition of PD-L1,thus,clinically validating the concept of affinity-balancing built into the design of the molecule. The study has proceeded to proof of-concept ("PoC") stage to further explore the safety and efficacy of CS2006 in selected tumor indications in U.S.,E.U. and Taiwan. We received the IND approval from the NMPA in September 2021. We presented the preclinical data at American Association for Cancer Research ("AACR") 2022.

III. Building out Research Pipeline Leveraging Multiple Sources of Innovation

Precision medicines and immuno-oncology combinations remain our strategic focus.Antibody-drug conjugates which deliver cytotoxic agents to tumor with precision,and multi-specificbiologics which can create new biology and are combinations of themselves representtwo near-term modalities for early-development.

We have made significant progress in 2022 with several initiatives:

One FIC/BIC I/O program declared PCC in 2022,which is a tri-specific molecule against PD-L1,VEGF plus another I/O target. Another FIC/BIC I/O program (antibody-cytokine fusion molecule) and up to two other I/O multi-specific programs are on track for PCC declaration in 2023.

Cell-penetrating therapeutic platform. Many well-known oncology targets are intracellular proteins that are considered undruggable by current therapeutic approaches.

We are developing a proprietary cell-penetrating therapeutic platform against these otherwise intractable targets. Significant progress has been made in the development of this platform with broad therapeutic potential for oncology and beyond. We obtained in vitro PoC using this platform with several treatment modalities in 2022 and expect additional in vitro/in vivo PoCs with multiple additional treatment modalities in 2023.

IV. Strategic Relationships Advance Commercialization Activities and Pipeline Development

We continue to grow and deepen relationships with key global strategic partners to expand commercialization of our in-market and late-stage drugs,bolster our early-stage pipeline of potential FIC/BIC molecules,and access technologies that complement our research and development efforts. To begin with,we continued to make significant and smooth progress on our relationship with Pfizer to explore China markets for sugemalimab. In addition,we are working with EQRx on exploring global markets for sugemalimab and a global phase III study of nofazinlimab in HCC.

In 2022,we entered into a new partnership with Roche Pharmaceuticals Co.,Ltd ("Roche") who became the global marketing authorization holder ("MAH") for pralsetinib. As part of this agreement,we acquired full manufacturing right to pralsetinib. Locally manufactured supply is expected to provide significant cost saving and as a result improve CStone's overall profitability. In the meantime,Roche will be responsible for the manufacturing and supply of pralsetinib for China before our successful technology transfer. On February 22,2023,Roche announced that Blueprint Medicines will regain global commercialization and development rights to pralsetinib in the future,excluding Greater China. Under the terms of the agreement,the termination will be effective within 12 months from the notification date of February 22,2023. CStone is currently working together with Roche and Blueprint to take necessary step to maintain the marketing authorization for Pralsetinib and ensure continuity of supply of Pralsetinib for patients in China.

We further strengthened the strategic partnership with Jiangsu Hengrui Pharmaceuticals Co.,Ltd. ("Hengrui"). In 2021,CStone and Hengrui established a strategic partnership by leveraging respective R&D and commercial expertise to accelerate the development and commercialization of our anti-CTLA-4 mAb (CS1002) to fully unleash its commercial value. In 2022,Hengrui received the IND clearance from NMPA for a phase Ib/II trial of CS1002 combination therapy for the treatment of advanced solid tumors,and has initiated two studies in HCC and NSCLC respectively.

V. Other Business Updates

Manufacturing. We are also in the process of technology transfer for multiple imported products which will reduce costs and improve long-term profitability of our products. Specifically,we have completed the technology transfer submission to CDE for avapritinib in July 2022 and bio-equivalence ("BE") has been demonstrated to support technology transfer. At the same time,the technology transfer for pralsetinib is in progress smoothly.

FUTURE AND OUTLOOK

We are working to bring a number of significant clinical and commercial developments to fruition that will be catalysts for our growth in the rest of 2023. A detailed breakdown of expected developments for the remainder of 2023 is below.

Commercial Developments

Our commercial team is working rapidly to expand the addressable market for our products and maximize their commercial potential with a focus on the following:

Improving market coverage by maximizing deployment effectiveness and leveraging digital platform.

Improving diagnosis rate and accuracy via deep collaboration with diagnostic companies,industry associations (e.g. PQCC),patient platforms and big data companies.

Strengthening branding and scientific leadership by leveraging the inclusion of guidelines,holding academic activities,and conducting post-approval clinical projects with focus on differentiation in clinical and safety profile.

Strengthening accessibility with continued efforts in hospitals and DTPs listing.

Improving affordability through pricing strategy optimization and commercial insurance/ innovative payment plans.

Enhancing patient education and support through patient community engagement,education sessions and follow-ups leveraging digital platform.

Research & Development

NDA approvals expected:

Pralsetinib: NDA approval in mainland China for the first-line treatment of RET fusionpositive locally advanced or metastatic NSCLC in the first half of 2023

Avapritinib: Prescription Drug User Fee Act ("PDUFA") action date for the treatment of adults with indolent systemic mastocytosis in U.S. in May 2023

Ivosidenib: MAA approval for the first-line treatment of AML and locally advanced or metastatic Cholangiocarcinoma with IDH1-mutated in E.U. in 2023

Lorlatinib: enrollment completed of the registrational trial for ROS1-positive advanced NSCLC in 2023

Sugemalimab: NDA approval for R/R ENKTL in mainland China in the second half of 2023

Sugemalimab: MAA approval for the first-line treatment in stage IV NSCLC in U.K. in the second half of 2023 or the first half of 2024

Sugemalimab: NDA approval for the first-line treatment in GC/GEJ in mainland China in the second half of 2023 or the first half of 2024

NDA filing expected:

Sugemalimab: NDA filing in mainland China for the first-line treatment of metastatic ESCC in the first half of 2023

Topline readouts expected:

Nofazinlimab: topline readout of the global phase III trial of nofazinlimab in combination with LENVIMA® (lenvatinib) in first-line treatment of patients with advanced HCC in Q4 2023 or Q1 2024

Early clinical programs:

CS2006: continuation of PoC expansion of CS2006 monotherapy in selected solid tumor indications

CS5001: plan to present CS5001 translational data at a major conference in 2023

CS5001: first patient enrollment in mainland China in Q1 2023

CS5001: data release from phase I trial for dose escalation in Q4 2023

FINANCIAL HIGHLIGHTS

International Financial Reporting Standards ("IFRS") Measures:

Revenue was RMB481.4 million for the year ended December 31,2022,composed of RMB364.3 million in sales of pharmaceutical products,representing sales of the Company's pharmaceutical products (avapritinib,pralsetinib and ivosidenib),RMB87.3 million in license fee income and RMB29.8 million in royalty income of sugemalimab,representing an increase of RMB237.7 million from RMB243.7 million for the year ended December 31,2021,primarily attributable to the increase in the sales of the pharmaceutical products and royalty income of sugemalimab.

Research and development expenses were RMB614.2 million for the year ended December 31,representing a decrease of RMB690.7 million from RMB1,304.9 million for the year ended December 31,primarily due to the decrease in milestone fee and third party contracting cost and the decrease in employee costs.

Administrative expenses were RMB249.1 million for the year ended December 31,representing a decrease of RMB48.5 million from RMB297.6 million for the year ended December 31,primarily due to the decrease in professional fees and other fee.

Selling and marketing expenses were RMB327.3 million for the year ended December 31,representing a decrease of RMB36.5 million from RMB363.8 million for the year ended December 31,primarily attributable to the decrease in marketing activities after the products launched in 2021.

Loss for the year was RMB902.7 million for the year ended December 31,representing a decrease of RMB1,017.4 million from RMB1,920.1 million for the year ended December 31,primarily attributable to the increase in revenue and the decrease in research and development expenses.

Non-International Financial Reporting Standards ("Non-IFRS") Measures:

Research and development expenses excluding the share-based payment expenses were RMB559.1 million for the year ended December 31,representing a decrease of RMB623.0 million from RMB1,182.1 million for the year ended December 31,primarily due to the decrease in milestone fee and third party contracting cost and the decrease in employee costs.

Administrative and selling and marketing expenses excluding the share-based payment expenses were RMB489.3 million for the year ended December 31,representing a decrease of RMB72.2 million from RMB561.5 million for the year ended December 31,primarily attributable to the decrease in marketing activities after the products launched in 2021.

Loss for the year excluding the share-based payment expenses was RMB760.6 million,representing a decrease of RMB936.8 million from RMB1,697.4 million for the year ended December 31,primarily attributable to the increase in revenue and the decrease in research and development expenses.

About CStone

CStone (HKEX: 2616) is a biopharmaceutical company focused on research,and commercialization of innovative immuno-oncology and precision medicines to address the unmet medical needs of cancer patients in China and worldwide. Established in 2015,CStone has assembled a world-class management team with extensive experience in innovative drug development,clinical research,and commercialization. The company has built an oncology-focused pipeline of 15 drug candidates with a strategic emphasis on immuno-oncology combination therapies. Currently,CStone has received ten NDA approvals for its four drugs. Multiple late-stage drug candidates are now under pivotal clinical trials or registration. CStone's vision is to become globally recognized as a world-renowned biopharmaceutical company by bringing innovative oncology therapies to cancer patients worldwide.

For more information about CStone,please visit www.cstonepharma.com.

Forward-looking statements

The forward-looking statements made in this article only relate to events or information as of the date when the statements are made in this article. Except as required by law,we undertake no obligation to update or publicly revise 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. All statements in this article are made on the date of publication of this article and may change due to future developments.