RemeGen (SEHK:9995) Valuation in Focus After Sales Growth and Positive Telitacicept Trial Results

RemeGen (SEHK:9995) just posted stronger sales numbers and trimmed its net loss for the first nine months of 2025. At the same time, new study results for its telitacicept drug are bolstering investor confidence.

See our latest analysis for RemeGen.

RemeGen’s stock has been volatile but delivered impressive gains for investors this year, with the share price up 524% year-to-date and a one-year total shareholder return of nearly 340%. After spiking sharply on optimism about its clinical progress and narrowing losses, momentum has cooled recently. However, the long-term performance trend remains strongly positive.

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Still, with the rapid rally and both sales and clinical milestones now public, investors are left wondering if RemeGen’s recent progress is truly undervalued or if the surge means future growth is already reflected in the current price.

Price-to-Sales Ratio of 19.2x: Is it justified?

RemeGen's current price-to-sales ratio sits at 19.2x, well above both the Hong Kong Biotechs industry average and peer benchmarks. This raises questions about whether recent performance merits such a premium at a last close of HK$84.15.

The price-to-sales (P/S) ratio gauges how much the market values each dollar of company revenue. For a biotech like RemeGen, which is still unprofitable but showing rapid sales growth, investors often use this multiple to compare against peers and the broader sector, especially when profits are not yet positive.

At 19.2x, RemeGen trades significantly higher than the Hong Kong Biotechs industry average of 13.1x and the peer average of 9.7x. Our regression-based fair price-to-sales is estimated at 14.7x, suggesting the market is currently paying a sizable premium, perhaps anticipating outsized growth or future profits that are still some years away. It is a strong signal that market expectations are running ahead of present fundamentals and that the multiple could compress if growth falters or sentiment cools.

Explore the SWS fair ratio for RemeGen

Result: Price-to-Sales of 19.2x (OVERVALUED)

However, clinical or regulatory setbacks, or a sharp slowdown in revenue growth, could quickly dampen sentiment and reverse recent gains.

Find out about the key risks to this RemeGen narrative.

Another View: SWS DCF Model Suggests Undervaluation

While the price-to-sales ratio points to overvaluation, the SWS DCF model tells a different story. According to our DCF, RemeGen’s current share price is about 21% below its estimated fair value. This suggests the stock may actually be undervalued by the market today. Does the market see risk others might be missing, or is it an opportunity in disguise?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out RemeGen for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 872 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own RemeGen Narrative

If you'd like to analyze the numbers from your own perspective or draw your own conclusions, you can easily build a narrative in just a few minutes. Do it your way

A great starting point for your RemeGen research is our analysis highlighting 2 key rewards and 2 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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