JPMorgan initiated protection on Ascentage Pharma Group AAPG, a commercial-stage Chinese language biotech firm specializing in most cancers therapy.
In January, Ascentage Pharma’s American depositary shares began buying and selling after the corporate closed its U.S. preliminary public providing of seven.325 million ADS at $17.25 per ADS.
On Wednesday, JP Morgan mentioned the corporate’s valuation is essentially pushed by two late-stage belongings already de-risked from an information perspective, olverembatinib and lisaftoclax, which are accredited or near approval in China.
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In March, the Middle for Drug Analysis (CDE) of China’s Nationwide Medical Merchandise Administration (NMPA) granted a Breakthrough Remedy Designation to olverembatinib together with low-intensity chemotherapy for the first-line therapy of newly identified sufferers with Philadelphia chromosome-positive acute lymphoblastic leukemia.
Analyst Brian Cheng on Wednesday initiated Ascentage Pharma with an Obese ranking and a worth goal of $27.
Concurrently, the Chinese language biotech reported 2024 gross sales of $134.3 million, up 342% 12 months over 12 months, primarily attributable to an possibility fee of $100 million acquired in June 2024 from Takeda Pharmaceutical Co Ltd TAK underneath the Unique Choice Settlement.
The preliminary public providing resulted in internet proceeds of $132.5 million, which, along with current money and money equivalents, mortgage amenities, future gross sales, and different potential funds, will present a money runway via 2027.
JP Morgan analyst Brian Cheng writes that revenue-generating olverembatinib ought to attain 1.6 billion Chinese language Yuan in peak gross sales by 2030 in China alone.
“With the Takeda partnership (as much as $1.2bn biobucks) in place for olver’ and a number of international trials now underway, we imagine AAPG is on the trail to maneuver onto the world stage. We imagine its fundamentals and pipeline story stay disconnected from the present valuation as we speak,” JP Morgan writes.
The analyst says the corporate’s lead belongings are differentiated with encouraging indicators of best-in-class potential in comparison with efficacy knowledge factors throughout a number of indications versus normal care.
Worth Motion: AAPG inventory is up 11.6% at $20.50 on Thursday’s final test.
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