| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 16.90 | 467 |
4SC AG is a clinical-stage biopharmaceutical company headquartered in Planegg, Germany, specializing in the development of small-molecule drugs targeting high-unmet-need cancers. The company’s pipeline includes Resminostat, an oral histone deacetylase (HDAC) inhibitor in Phase II trials for cutaneous T-cell lymphoma, and Domatinostat, another oral small-molecule therapy in Phase Ib/II trials for melanoma and gastrointestinal tumors. 4SC AG leverages strategic collaborations, such as its partnership with the Netherlands Cancer Institute, to advance its oncology-focused drug candidates. Operating in the competitive biotechnology sector, the company adopts an out-licensing model to monetize its innovations, catering to pharmaceutical and biotech partners. With a focus on precision oncology, 4SC AG aims to address critical gaps in cancer treatment, positioning itself as a niche player in the European biotech landscape. Despite its clinical-stage status, the company’s targeted approach and collaborative strategy underscore its potential in the rapidly evolving immuno-oncology market.
4SC AG presents a high-risk, high-reward investment opportunity due to its clinical-stage pipeline and focus on oncology. The company’s financials reflect typical biotech challenges, with a net loss of €8.24 million in FY 2023 and negative operating cash flow (-€9.55 million). However, its €8.32 million cash reserve provides near-term runway for clinical development. Investors should weigh the potential of its lead candidates—Resminostat and Domatinostat—against the inherent risks of drug development, including trial failures and regulatory hurdles. The lack of revenue diversification (€304k in FY 2023) heightens dependency on clinical success. While the stock’s beta of 0 suggests low correlation to broader markets, its speculative nature makes it suitable only for risk-tolerant investors with a long-term horizon in biotech.
4SC AG operates in the highly competitive oncology biotech space, where it differentiates through its focus on epigenetic modulators (HDAC inhibitors) and immuno-oncology combinations. Its lead candidate, Domatinostat, targets checkpoint inhibitor-resistant cancers—a niche with growing interest but limited approved therapies. The company’s out-licensing strategy reduces capital intensity but exposes it to revenue volatility. Compared to larger peers, 4SC lacks commercial infrastructure, relying entirely on partnerships for late-stage development and commercialization. Its German base provides access to EU research grants but limits visibility in the dominant U.S. biotech market. Pipeline depth is a constraint, with only two clinical-stage assets, increasing binary risk. However, its collaboration with the Netherlands Cancer Institute enhances scientific credibility. The HDAC inhibitor space is crowded (e.g., Merck’s Zolinza), but 4SC’s oral formulations and combination approaches could offer differentiation if clinical data are positive. Capital efficiency is a concern given its small market cap (€150.7M), which may necessitate dilutive financing to advance trials.