| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 31.50 | 2134 |
| Intrinsic value (DCF) | 0.56 | -60 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
AB Science S.A. (0Q77.L) is a Paris-based pharmaceutical company specializing in the research, development, and commercialization of protein kinase inhibitors for human and veterinary medicine. The company's flagship drug, masitinib, is a tyrosine kinase inhibitor currently in Phase III clinical trials for treating prostate and pancreatic cancer, amyotrophic lateral sclerosis (ALS), multiple sclerosis, Alzheimer's disease, severe asthma, and mastocytosis. Additionally, masitinib is being tested in Phase II trials for COVID-19 treatment. AB Science also develops AB8939, a synthetic microtubule destabilizer targeting acute myeloid leukemia (AML), and AB20001, a combination therapy for COVID-19. The company markets masitinib in Europe under the brand Masivet. Founded in 2001, AB Science operates in the highly competitive biopharmaceutical sector, focusing on niche therapeutic areas with high unmet medical needs. With a market cap of approximately €72 million, the company remains a speculative yet innovative player in oncology and neurology drug development.
AB Science presents a high-risk, high-reward investment opportunity due to its focus on late-stage clinical trials for masitinib across multiple indications. The company's financials reflect typical biotech challenges, with a net loss of €10.05 million in FY 2023 and negative operating cash flow. However, successful Phase III results could lead to significant upside, particularly in oncology and neurodegenerative diseases. Key risks include clinical trial failures, regulatory hurdles, and cash burn (€6.07 million in cash vs. €19.1 million in debt). The stock's high beta (1.624) indicates volatility, making it suitable only for risk-tolerant investors with a long-term horizon.
AB Science competes in the crowded kinase inhibitor market, where differentiation is critical. Its competitive edge lies in masitinib's broad therapeutic potential across oncology and inflammatory diseases—a rarity for a single molecule. However, the company faces intense competition from larger biopharma firms with deeper pipelines and financial resources. Unlike many competitors pursuing targeted therapies, AB Science's strategy hinges on repurposing masitinib for multiple indications, reducing R&D costs but increasing regulatory complexity. The lack of commercial infrastructure also limits its ability to monetize approvals independently, likely necessitating partnerships. Financially, AB Science is at a disadvantage versus peers due to its small cash reserves and reliance on dilutive financing. Its focus on niche conditions (e.g., mastocytosis) provides some insulation from direct competition but constrains market potential. Success depends heavily on masitinib's clinical data, as the pipeline lacks diversification beyond this asset.