GAVRETO’s NRDL Inclusion And China Alliance Network Might Change The Case For Investing In CStone Pharmaceuticals (SEHK:2616)

• CStone Pharmaceuticals announced on 8 December 2025 that its targeted therapy GAVRETO (pralsetinib, 100 mg) has been included in China’s latest National Reimbursement Drug List, which will take effect on 1 January 2026 and broaden reimbursed access for RET-altered lung and thyroid cancer patients.
• The NRDL inclusion, combined with CStone’s existing commercialization partnership with Shanghai Allist in Mainland China, underscores how alliance-driven distribution is central to expanding GAVRETO’s reach across Greater China.
• We’ll now examine how GAVRETO’s NRDL inclusion, alongside the Allist commercialization partnership, shapes CStone Pharmaceuticals’ broader investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

What Is CStone Pharmaceuticals' Investment Narrative?

For CStone, you really have to believe in its transition from a pure R&D story to a commercial-stage oncology player, with sugemalimab and now GAVRETO as key proof points. The NRDL listing for GAVRETO looks like a supportive short term catalyst because it should help convert a niche, high-cost targeted therapy into a more broadly reimbursed option, especially when paired with the Allist commercialization deal in Mainland China. That said, the share price already had a very large run-up this year and the stock still trades on a rich sales multiple, so expectations are not low. The company is loss-making, has raised fresh equity twice in 2025, and consensus profitability is still years away, so execution risk on both commercialization and cost control remains front and center. But against that optimism sits one issue many shareholders might be underestimating.

Despite retreating, CStone Pharmaceuticals' shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

The Simply Wall St Community’s two fair value estimates for CStone span roughly HK$6.92 to HK$21.50, reflecting sharply different views on upside. Set that against the recent NRDL boost for GAVRETO and a history of equity raises, and you start to see why opinions on how sustainable CStone’s progress will be are so far apart. With such dispersion, it pays to weigh several contrasting viewpoints before deciding where you stand.

Explore 2 other fair value estimates on CStone Pharmaceuticals - why the stock might be worth over 3x more than the current price!

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.

• A great starting point for your CStone Pharmaceuticals research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free CStone Pharmaceuticals research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CStone Pharmaceuticals' overall financial health at a glance.

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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.

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