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Sichuan Kelun Biotech Biopharmaceutical (SEHK:6990) Could Be 21% Undervalued After ADC Approval

Simply Wall St · 1d ago

Why the trastuzumab botidotin data matters for Sichuan Kelun-Biotech Biopharmaceutical

The latest move from Sichuan Kelun-Biotech Biopharmaceutical (SEHK:6990) is rooted in hard clinical evidence. Phase III results for its HER2-targeted ADC, trastuzumab botidotin, published in the Journal of Clinical Oncology, showed statistically significant improvements in key efficacy outcomes versus T-DM1 and supported new NMPA approval for second-line or later HER2-positive breast cancer.

Investors have already reacted to the trastuzumab botidotin update, with Sichuan Kelun-Biotech Biopharmaceutical’s share price gaining 16.05% over the past 90 days and 22.37% year to date, even though the 1-year total shareholder return is still down 4.54% and the 3-year total shareholder return remains very large at above 7x.

Scan 131 healthcare AI stocks that, like Sichuan Kelun-Biotech Biopharmaceutical, are riding fresh clinical data and regulatory milestones in high-impact treatment areas.

After Sichuan Kelun-Biotech Biopharmaceutical’s sharp move, the share price of HK$490.20 still sits well below both analyst targets and intrinsic estimates. Does fair value sit closer to the market or to that higher range?

Most Popular Narrative: 20.7% Undervalued

Sichuan Kelun-Biotech Biopharmaceutical’s widely followed narrative points to a fair value of HK$618.43, compared with the last close of HK$490.20, which puts the recent trastuzumab botidotin news into a much broader pipeline and valuation story.

The broad adoption of antibody drug conjugates in cancer treatment, combined with Kelun-Biotech's OptiDC platform and 9 ADC projects in the clinic, positions the company to add indications and products that can widen the revenue base over time.

Partnerships with global pharmaceutical groups such as Merck, Ellipses and Crescent Bio, including 17 ongoing global Phase III trials, create a route for overseas launches, milestones and royalties that can supplement domestic product sales and earnings.

See why 1 investors see Sichuan Kelun-Biotech Biopharmaceutical as 21% undervalued.

Result: Fair Value of HK$618.43 (UNDERVALUED)

Still, Sichuan Kelun-Biotech Biopharmaceutical leans heavily on ADC heavy oncology trends and large partner trials, so any clinical setbacks or delayed approvals could quickly weaken that undervaluation story.

Find out about the key risks to this Sichuan Kelun-Biotech Biopharmaceutical narrative.

Another view on Sichuan Kelun-Biotech Biopharmaceutical’s valuation

There is one big catch. Sichuan Kelun-Biotech Biopharmaceutical trades on a P/S of 47.9x, which is more than 4x the Hong Kong Biotechs industry at 10.5x, above the peer average of 12.6x, and well above a fair ratio of 16.1x that the market could eventually move toward.

That kind of gap can work in shareholders’ favour if revenue keeps tracking expectations, but it also raises the risk that a reset in sentiment or sales forecasts could hit the share price hard before any long term story plays out.

See what the numbers say about this price gap in our valuation breakdown, then compare it with your own assumptions before taking the analyst narrative at face value, See what the numbers say about this price — find out in our valuation breakdown.

SEHK:6990 P/S Ratio as at Sep 2026
SEHK:6990 P/S Ratio as at Sep 2026

Next Steps

Feeling torn between the enthusiasm and the warning signs around Sichuan Kelun-Biotech Biopharmaceutical is normal. Move quickly, review the data in full, and decide where you stand based on the 4 key rewards and 1 important warning sign.

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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.