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    Why CStone Pharmaceuticals (SEHK:2616) Is Up 7.9% After GAVRETO NRDL Inclusion Approval In China

    Simply Wall St·12/13/2025 14:23:00
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    • CStone Pharmaceuticals announced that its RET-targeted cancer therapy GAVRETO® (pralsetinib) has been approved for inclusion in China’s National Reimbursement Drug List, with reimbursement due to begin on 1 January 2026.
    • This listing materially broadens patient access in China’s public healthcare system, potentially reinforcing CStone’s role as a key oncology player in Greater China.
    • We’ll now examine how NRDL inclusion for GAVRETO shapes CStone’s investment narrative, particularly around access-driven growth and oncology focus.

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    What Is CStone Pharmaceuticals' Investment Narrative?

    To own CStone, you need to believe that its expanding oncology portfolio can eventually scale into a sustainable, profitable business despite current losses, dilution and execution risk. The NRDL inclusion of GAVRETO looks meaningful for the short term story, bolstering the near‑term revenue path and supporting the idea that CStone can convert science into reimbursed products in China’s public system. It also complements the recent approvals of sugemalimab, reinforcing the core thesis around an oncology‑focused platform rather than a one‑drug story. At the same time, the sharp year‑to‑date share price run, high price to sales multiple and the step back to a sizeable loss underscore how much still has to go right. NRDL helps the narrative, but it does not remove the funding, pricing and execution risks.

    However, one of the key financial risks here is hard to ignore for shareholders. CStone Pharmaceuticals' shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

    Exploring Other Perspectives

    SEHK:2616 1-Year Stock Price Chart
    SEHK:2616 1-Year Stock Price Chart
    The Simply Wall St Community’s two fair value estimates for CStone span roughly HK$6.92 to HK$21.28, underlining how far apart individual views can be. Set against CStone’s recent loss and repeated equity raises, that spread invites you to weigh differing expectations for how NRDL‑driven uptake and the broader oncology pipeline might influence the company’s ability to fund itself and move toward sustainable profitability.

    Explore 2 other fair value estimates on CStone Pharmaceuticals - why the stock might be worth just HK$6.92!

    Build Your Own CStone Pharmaceuticals Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.