Under the transformation of the pharmaceutical innovation market, biotech companies are actively "protecting the cold"

【Pharmaceutical Network Industry News】Recently, it has been reported that CStone Pharmaceutical's Suzhou Industrialization Base has suspended production and other related work
for production services since November 4, 2022.
In this regard, CStone Pharmaceuticals said that the suspension of production at its industrialization base is to reduce operating costs and promote a more detailed division of labor in industrialization
.
Since June 2022, CStone Pharmaceuticals has actively carried out research and discussion, considering that there is no clear plan for mass production, and the supply of the company's products in the commercialization stage remains stable, and the real estate work is also in cooperation with CDMO as planned, in order to reduce the operating costs of the company, after the consideration and careful decision of the company's board of directors, the Suzhou industrialization base was temporarily suspended on November 4, 2022
.
CStone Suzhou's other businesses are not affected by this adjustment, and the translational medicine center and R&D business are still operating
in an orderly manner.
Founded at the end of 2015, CStone is a biopharmaceutical company focusing on the research and development and commercialization of innovative tumor immunotherapy and precision therapy drugs
.
In August 2019, CStone signed a contract for its global R&D headquarters and industrialization base project in Suzhou, with a total investment of 1 billion yuan and a total planned capacity area of nearly 100,000 square meters, which will have integrated R&D production capacity of R&D, pilot and commercial production of biological drugs and chemical drugs, with a design capacity of 26,000 liters of macromolecular biopharmaceuticals and 1 billion tablets and capsules
of small molecule chemicals 。 CStone Pharmaceuticals said that the temporary suspension of production does not mean the closure of the company's industrialization base, and the company will retain core staff and continue to actively contact industrial cooperation opportunities to prepare
for setting sail again in the future.
It is worth noting that CStone Pharmaceuticals is not the first Biotech company
in the industry to reduce investment in production.
In September this year, Kewang also sold its manufacturing facility to WuXi Biologics
.
Under the partnership, WuXi Biologics will absorb Kewang Pharma's Suzhou process development and pilot manufacturing facility while securing the development and manufacturing needs
of its global pipeline of innovative drugs.
In addition, in addition to reducing investment in production, many biotech companies are currently shrinking their R&D pipelines and selling assets
.
In October this year, Harbour Pharma issued a series of announcements, announcing that it had licensed its late-stage clinical batory (FcRn monoclonal mab) to Enbipu Pharmaceutical Co.
, Ltd.
, a subsidiary of CSPC Pharmaceutical Group, with a total transaction amount of up to 1 billion yuan; At the same time, it ended its phase III clinical trial of tenacercept (HBM9036) in China and no new subjects
were enrolled.
On August 16, Genting Xinyao announced an agreement with Immunomedics, Inc.
, a wholly-owned subsidiary of Gilead, to transfer the exclusive rights to develop and commercialize Trodelvy (gosatuzumab) to Immunomedics.
Genting Xinyao will receive consideration totaling US$455 million, including US$280 million in advance payments and US$
175 million in potential future milestone payments 。 Analysts believe that whether it is the suspension of production or the transfer of the R & D pipeline, it sends a signal that "Biotechs" are trying their best to "protect against the cold"
.
In fact, it is obvious from the above that in order to continue to live, Biotech has changed from the previous "buying, buying" to "selling": selling equity, selling product pipelines, selling production equipment/bases, and even becoming a CRO/CDMO with a high probability
.
In the future, under the background of the state's strong support for "true innovation", independent research and development, and the homogeneous assets accumulated by some enterprises in the early stage are still seriously excessive, the industry expects that a considerable number of biotech companies will have frequent pipelines and asset sales
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.