Akeso stock reacts to new Phase III colon cancer trial
Akeso (SEHK:9926) just dosed the first patient in a Phase III study of cadonilimab as perioperative monotherapy for resectable MSI-H/dMMR colon cancer, opening a fresh front in its immuno-oncology pipeline.
The latest Phase III move comes as Akeso's share price has climbed 14.78% over the past 30 days and 12.19% over 90 days, even though the year-to-date share price return is down 3.71% and the 1-year total shareholder return has fallen 14.77%. This is set against a much stronger 3-year total shareholder return of 179.39% and 5-year total shareholder return of 141.91%, which points to long-term holders still sitting on sizeable gains, while near-term momentum has picked up around HK$109.1.
Capitalize on the momentum around Akeso's IO pipeline and scan a hand picked set of 127 healthcare AI stocks that could be shaping the next wave of oncology breakthroughs.
Akeso shares have bounced hard on fresh IO data, yet the stock still trades at a material discount to both analyst targets and intrinsic value estimates. How much of the opportunity is genuinely in front of investors rather than behind them?
Most Popular Narrative: 29% Undervalued
Akeso is trading at HK$109.1 against a widely followed fair value view of about HK$154.4, which leaves a sizeable valuation gap that hinges on whether its late stage oncology bets and reimbursement push actually translate into sustained cash generation.
Akeso's strategy to include their bispecific antibodies, cadonilimab and ivonescimab, in China's National Reimbursement Drug List (NRDL) by 2025 aims to significantly expand market access and adoption, potentially driving substantial revenue growth.
The initiation and ongoing progress of numerous Phase III trials for cadonilimab and ivonescimab across various cancer types indicate potential future approvals that could enhance revenue streams and market positioning globally.
See why 3 investors see Akeso as 29% undervalued .
Result: Fair Value of HK$154.42 (UNDERVALUED)
Still, the narrative frays quickly if Akeso struggles to turn its heavy R&D spend into profits or if its reliance on a few key oncology drugs backfires.
Find out about the key risks to this Akeso narrative .
Another View: Akeso looks expensive on sales
The first story says Akeso is 29% below a fair value of about HK$154.4, yet its P/S ratio of 24.9x tells a very different story. That is far above the Hong Kong Biotechs sector on 10x and above its own fair ratio of 13.4x, which points to meaningful valuation risk if sentiment cools.
To see how the market's current multiples stack up against the numbers, See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
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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.
Companies discussed in this article include 9926.HK .
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