CSPC Cellular Valley (Hainan) Pharma Secures $20M Capital to Advance Innovative CAR-T Pipeline

According to Qichacha, CSPC Cell Valley (Hainan) Pharmaceutical Technology Co., Ltd. (hereinafter referred to as “CSPC Cell Valley”) was recently established with a registered capital of RMB 20 million. CSPC, Shenzhen Cell Valley Biopharmaceutical, and Shenzhen Qianhai Hualaili Pharmaceutical hold 51%, 34%, and 15% equity interests, respectively. CSPC Cell Valley’s main business areas include medical services, pharmaceutical manufacturing, and stem cell technology development.

This is not the first time CSPC has entered the biologics sector, but the establishment of a new company focused on cell therapy in Hainan, coupled with a partnership with professional platforms such as Shenzhen Cell Valley, reveals a critical step in this traditional pharmaceutical giant’s innovative transformation—representing both a precise capture of regional policy dividends and a proactive strategic positioning for industrial chain synergy.

In the field of cell therapy, CSPC currently has several pipeline products, including SYS6020 (BCMA CAR-T), SYS6063 (CD19/BCMA CAR-T), and SYS6055 (CD19 CAR-T).

Among them, SYS6055 received NMPA approval on January 29, 2026, to conduct clinical trials in China for the indication of relapsed/refractory aggressive B-cell lymphoma.This product is the first in vivo CAR-T therapy approved for clinical use in China,In vivo generation of CD19-targeted CAR-T cells via lentiviral vectors enables specific recognition and elimination of target cells, thereby achieving therapeutic efficacy. Compared with conventional CAR-T products, this approach offers potential advantages in terms of cost, accessibility, and immediacy. Preclinical studies have demonstrated that this product can specifically generate CAR-T cells in vivo, exhibiting significant antitumor effects and a favorable safety profile, along with cost and time efficiencies. It holds promise as an improved therapeutic option for patients with B-cell malignancies.

SYS6020 is another “first-in-class” product. In June 2024, SYS6020 received approval from the NMPA to conduct clinical trials in China, with multiple myeloma (MM) as its indication.Becomes the world’s first mRNA-LNP-based cell therapy product approved for clinical trials.This pipeline works by expressing a CAR that specifically recognizes the BCMA antigen, thereby targeting and eliminating BCMA-positive cells in patients to achieve therapeutic effects. Compared with traditional CAR-T products, this product offers advantages such as high cell viability, high CAR positivity rate, no risk of tumorigenesis caused by genomic integration, and lower incidence of side effects like cytokine release syndrome (CRS). Preclinical studies have shown that this product can significantly kill myeloma cells positive for the BCMA antigen, demonstrating good safety and efficacy.

By establishing CSPC Cell Valley in Hainan, CSPC can secure multifaceted support for its CAR-T pipeline under development, including policy incentives, clinical resources, talent acquisition, cost advantages, and international collaboration, thereby accelerating the R&D, clinical translation, and market promotion of the aforementioned CAR-T products.

In terms of policyHainan’s exclusive “Regulations of the Boao Lecheng International Medical Tourism Pilot Zone in the Hainan Free Trade Port on Promoting New Biomedical Technologies” were adopted at the 14th Meeting of the Standing Committee of the 7th People’s Congress of Hainan Province on November 29, 2024, and came into effect on February 1, 2025. The Regulations explicitly support clinical research and translational application of new biomedical technologies such as cell therapy, including measures to streamline approval processes and clarify pathways for lawful charging, thereby helping to accelerate the clinical research and translational application of CAR-T products.

Clinically,The Boao Lecheng International Medical Tourism Pilot Zone permits Grade A tertiary hospitals to conduct clinical research on cell therapies upon obtaining the necessary qualifications. CSPC can leverage local medical resources to facilitate clinical trials of its CAR-T products, thereby shortening the R&D cycle and rapidly acquiring clinical data.

In terms of talent and costs,On one hand, Hainan is establishing itself as an innovation hub for the biopharmaceutical industry, attracting domestic and international talent and research institutions. CSPC Cell Valley can leverage local talent policies and scientific research platforms to attract professionals in the CAR-T field, strengthen collaboration with universities and research institutes, and enhance its R&D capabilities. On the other hand, Hainan’s preferential tax policies, such as tariff exemptions for value-added processing sold domestically, can reduce the production, transportation, and operational costs of CAR-T products. Meanwhile, third-party service platforms for public preparation, storage, and testing that may be established locally can provide technical support, improving R&D and production efficiency. As an important window for China’s opening-up, the Hainan Free Trade Port makes it more feasible for CSPC’s cell therapy products to engage in international cooperation and expand their market presence in the future.

Furthermore, one of the shareholders of CSPC Cell Valley is Shenzhen Cell Valley, a CRO/CDMO enterprise that is among the few in China capable of achieving GMP production of clinical-grade retroviral vectors. From viral vector pipelines to cell product pipelines, and from assistance with IIT/IND/NDA filings to talent development within the industry, Shenzhen Cell Valley has established a mature, full-process, one-stop contract service platform. It has built production pipelines for various viral vectors, including retroviruses and lentiviruses, as well as cell production pipelines for CAR-T, CAR-NK, and TCR-T therapies, thereby enabling it to provide comprehensive, end-to-end industrial chain services to CSPC Cell Valley.

In recent years, CSPC has continuously increased its investment in innovative drugs, with annual R&D expenditure reaching approximately RMB 5.7 billion and growing at a double-digit rate each year. Currently, CSPC has established eight major technology platforms, including nano-formulations, mRNA, antibody-drug conjugates (ADCs), and cell therapy, focusing on six key therapeutic areas: oncology, neuropsychiatry, cardiovascular diseases, immunology and respiratory conditions, metabolism, and anti-infectives. Leveraging these eight technology platforms, the company has more than 200 innovative drug candidates in development, comprising over 90 large-molecule drugs, more than 60 small-molecule drugs, and upwards of 50 novel formulations. By the end of 2028, CSPC is expected to submit marketing applications for more than 50 new drugs or new indications.

Amidst the pressure of innovative transformation, CSPC is also experiencing performance growing pains. CSPC Pharmaceutical Group Limited is facing the dual challenge of performance volatility and transformation pressures. In the first three quarters of 2025, CSPC’s total revenue reached RMB 19.891 billion, a year-on-year decrease of 12.3%; profit attributable to shareholders amounted to RMB 3.511 billion, a year-on-year decrease of 7.1%. By revenue segment, the decline was primarily driven by the finished pharmaceutical products business, which fell by 17.2% year on year. Further breaking down the finished pharmaceuticals sector, all six major therapeutic areas faced significant pressure, with oncology drugs showing the most pronounced decline at 56.8%.

In the face of declining traditional business, CSPC’s choice is clear and resolute: to make “innovation” its core strategic engine. Starting in the second half of 2025, the company has continuously intensified its layout in the biologics sector:

In September 2025, CSPC Innovation acquired an additional 29% equity stake in its controlled subsidiary, Jushi Bio (which focuses on cutting-edge technologies such as antibody-based drugs, ADCs, and mRNA vaccines), for RMB 1.1 billion in cash, increasing its shareholding from 51% to 80%. In December 2025, CSPC Innovation planned to jointly establish Runshi Bio with CSPC Zhongqi Pharmaceutical by contributing a total of RMB 450 million; the joint venture will take over all GLP-1 target-related product pipelines under CSPC. In February 2026, CSPC’s restructuring of Jingfeng Pharmaceutical made new progress, as CSPC acquired 457 million shares for approximately RMB 663 million, becoming the controlling shareholder. Jingfeng Pharmaceutical had previously disclosed that it has established five major R&D platforms, including biologics development technology and macromolecular cross-linking technology, which are expected to create synergies with CSPC in the future.

Furthermore, CSPC has also chosen to increase its investment in AI to accelerate the deployment of its innovative drug pipeline.In its 2024 annual report and 2025 interim report, CSPC significantly increased its mentions of AI. Building on its “leading position in the field of AI-driven drug discovery,” CSPC has elevated AI to a higher strategic priority: facilitating the upgrade of Chinese innovative pharmaceutical companies from “product exporters” to “technology platform providers,” and transforming them from “licensors” into “global co-developers.” In other words, CSPC’s ultimate goal is to transition from being a provider of innovative products to becoming a solutions provider. To achieve this objective, CSPC has established partnerships with XtalPi, Insilico Medicine, and Huawei Cloud, leveraging AI technologies to assist in drug design and improve the efficiency and success rate of new drug screening.

CSPC’s bets on AI and innovative drugs are already paying off: In October 2024, CSPC entered into an exclusive licensing agreement with AstraZeneca for YS2302018, under which CSPC will receive total payments of up to $2.02 billion, including a $100 million upfront payment. In December of the same year, CSPC reached a global licensing agreement with BeiGene for SYH2039, entitling CSPC to total payments of $1.835 billion, including a $150 million upfront payment. Notably, both YS2302018 and SYH2039 were discovered through CSPC’s AI-driven small-molecule drug design platform.

Subsequently, the collaboration between CSPC and AstraZeneca has deepened further. In June 2025, CSPC and AstraZenaca entered into a strategic partnership to jointly develop novel oral small-molecule drug candidates using an AI platform, with a primary focus on indications such as immune diseases. The total potential value of this collaboration amounts to $5.33 billion. Unlike the previous single-product licensing model, this partnership encompasses a series of drug candidates targeting multiple pathways and indications. This also reflects AstraZeneca’s recognition of CSPC’s capabilities in developing new pipelines through its AI platform.

This year, the collaboration between CSPC and AstraZeneca has achieved another major breakthrough. On January 30, 2026, CSPC Pharmaceutical Group Limited and AstraZeneca entered into a partnership to develop innovative long-acting peptide drugs leveraging CSPC’s sustained-release drug delivery technology platform and its AI-driven peptide discovery platform. Under the agreement, CSPC will receive an upfront payment of $1.2 billion, along with potential R&D and commercial milestone payments of up to $3.5 billion and $13.8 billion, respectively, bringing the total deal value to as much as $18.5 billion. This transaction sets a new record for outbound licensing deals in China’s biopharmaceutical industry.

This series of moves indicates that CSPC is transitioning from a traditional chemical pharmaceutical company to an innovation-driven biopharmaceutical enterprise.The establishment of the cell technology company in Hainan marks the latest move in this transformation strategy—securing a strategic position in the cutting-edge field of cell therapy while capitalizing on the policy dividends of the Hainan Free Trade Port. Leveraging the professional platform of Shenzhen Cell Valley, the company can further shorten the R&D and industrialization cycle for its cell therapy products, paving the way for subsequent clinical translation, commercialization, and global expansion.