Cstone's 2022 earnings: Revenue doubled, with drug sales reaching 364.3 million yuan.

Recently, Cstone Pharmaceutical announced its 2022 annual results and recent business highlights.

The total revenue in 2022 was 481.4 million yuan. Among them, commercial revenue was 394.1 million yuan, up 142% year on year

Solid financial position, with cash reserves of RMB 1.042 billion as of December 31, 2022; Loss decreased by 55% during the year

Five new drug marketing applications were approved, and two new products, Tosuvol ® (Evonix tablets) and Zezheme ® (Suglizumab injection), were successfully commercially launched. Together with the already marketed Pujiva ® (Pratinib capsules) and Tajiva ® (Avatinib tablets), four first-in-class/potentially best-in-class oncology innovations have been successfully marketed

Five new drug marketing applications are under review, including the marketing application of Zezheme ® for first-line treatment of metastatic non-small cell lung cancer, which has been accepted in the UK and the EU

The potential best-in-class drug, CS5001(ROR1ADC), is being tested in Phase I trials in the United States, Australia and mainland China, with preliminary data expected before the end of the year

Financial summary

Ifrs measurement:

Revenue for the year ended December 31, 2022 was RMB481.4 million, an increase of RMB237.7 million from RMB243.7 million for the year ended December 31, 2021. This included drug sales of RMB364.3 million (representing the Company's sales of the drugs Avatinib, Pratinib and Avonib) and licensing fee income of RMB87.3 million and Suglizumab royalty income of RMB29.8 million, mainly due to increased drug sales and Suglizumab royalty income.

Research and development expenditures for the year ended December 31, 2022 were RMB614.2 million, a decrease of RMB690.7 million from RMB1,304.9 million for the year ended December 31, 2021, mainly due to lower milestone expenses and third-party contract costs and employee costs.

Administrative expenses were RMB249.1 million for the year ended December 31, 2022, a decrease of RMB48.5 million from RMB297.6 million for the year ended December 31, 2021, primarily due to a decrease in professional fees and other expenses.

Sales and marketing expenses were RMB327.3 million for the year ended December 31, 2022, a decrease of RMB36.5 million from RMB363.8 million for the year ended December 31, 2021, primarily due to the expanded coverage of the sales force.

The loss for the year ended December 31, 2022 was RMB902.7 million, a decrease of RMB1,017.4 million from RMB1,920.1 million for the year ended December 31, 2021, mainly due to an increase in revenue and a decrease in research and development expenditure.

Non-ifrs measurement:

After deducting share-based payment expenses, research and development expenses were RMB559.1 million for the year ended December 31, 2022, a decrease of RMB623 million from RMB1,182.1 million for the year ended December 31, 2021, primarily due to lower milestone expenses and third-party contract costs, as well as employee costs.

After deducting share-based payment expenses, administrative and sales and marketing expenses were RMB489.3 million for the year ended December 31, 2022, a decrease of RMB72.2 million from RMB561.5 million for the year ended December 31, 2021, primarily due to reduced marketing activities following the launch of products in 2021.

After deducting share-based payment expenses, the loss for the year was RMB760.6 million, down RMB936.8 million from RMB1,697.4 million for the year ended 31 December 2021, mainly due to higher revenue and lower research and development expenditure.