Stonegate Capital Raises AB Science Target to €4.25 on Focused Pipeline Strategy
Event summary
- Stonegate Capital Partners updated its coverage of AB Science with a discounted cash flow valuation midpoint of €4.25 per share (range €3.20–€5.77).
- AB Science now prioritizes masitinib for ALS and AB8939 for AML, with progressive MS and Alzheimer’s as partnership opportunities.
- The company ended FY2025 with €10.2M in cash, adding €3.2M via an April 2026 private placement.
- Stonegate’s valuation model could reach €8.50 per share if the discount rate drops to 15% post-regulatory de-risking.
The big picture
AB Science is sharpening its focus on high-impact indications (ALS, AML) while positioning neurodegenerative programs for partnerships, a strategic shift reflecting the capital efficiency demands of biotech investors. Stonegate’s updated valuation underscores the potential upside if clinical and regulatory risks are mitigated, aligning with broader trends in precision medicine financing.
What we're watching
- Clinical Milestones
- The pace at which masitinib’s Phase 3 trial (AB23005) delivers results will validate AB Science’s ALS strategy.
- Pipeline Execution
- Whether AB8939 can sustain early AML response rates in later-stage trials with expanded combinations.
- Partnership Dynamics
- How AB Science leverages progressive MS and Alzheimer’s as partnership-led opportunities to reduce capital intensity.
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