Assessing Ascletis Pharma (SEHK:1672) Valuation Following ASC36 Obesity Pipeline Advancement

Ascletis Pharma (SEHK:1672) has drawn attention this week by selecting ASC36, a once-monthly amylin receptor agonist, as its next clinical candidate for obesity treatment. The company intends to submit an IND for ASC36 to the U.S. FDA in 2026.

See our latest analysis for Ascletis Pharma.

Ascletis Pharma’s run of pipeline news, including the latest about ASC36, has helped fuel market momentum, even as recent weeks saw some volatility. After an incredible year-to-date share price return of nearly 198% and a staggering 584% total shareholder return over the past year, Ascletis is now firmly on investors’ radars as one of the sector’s most dynamic performers.

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With so much optimism already baked into Ascletis Pharma’s meteoric rise, the question now becomes clear: are shares trading at a steep discount to their true value, or has the market already priced in the company’s coming growth story?

Price-to-Book Ratio of 4.7x: Is it justified?

Ascletis Pharma’s shares currently trade at a price-to-book (P/B) ratio of 4.7x, which stands out against both peer and sector norms. The last close was HK$9.65, a figure that reflects the market's strong expectations for the company's future value relative to its tangible assets.

Price-to-book ratio compares a company's market value to the net assets on its balance sheet. For biotechs like Ascletis, where near-term profits are elusive, P/B can capture how much investors are betting on pipeline breakthroughs and intangible value. It is a favored metric for early-stage growth companies in science-driven sectors.

Ascletis’s P/B of 4.7x is not only below the Hong Kong Biotechs industry average of 5.1x, but also significantly under the peer average of 32.7x. This suggests investors are recognizing both the potential and the inherent risks, but are not inflating expectations to speculative extremes seen elsewhere in the sector.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book Ratio of 4.7x (UNDERVALUED)

However, rapid revenue growth may not offset persistent net losses or market volatility. This could challenge bullish expectations for Ascletis Pharma’s valuation.

Find out about the key risks to this Ascletis Pharma narrative.

Build Your Own Ascletis Pharma Narrative

If you think there’s a different angle to Ascletis Pharma’s story, why not dive into the numbers yourself and shape your own view in just a few minutes? Do it your way

A great starting point for your Ascletis Pharma research is our analysis highlighting 1 key reward and 5 important warning signs that could impact your investment decision.

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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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