Ascentage Pharma Group International (AAPG) stock could see significant upside as the cancer drug developer approaches several major clinical trial results in 2027, according to William Blair.

Analyst Alethia Young initiated coverage of Ascentage on Thursday with an Outperform rating and a discounted cash flow-based valuation of $31 per share.

Young believes investors have overlooked Ascentage, largely because the company initially focused its clinical development efforts on China.

Three Major Clinical Milestones Ahead in 2027

William Blair expects Ascentage to reach three pivotal clinical milestones in 2027, driven by its cancer treatments olverembatinib and lisaftoclax.

“We think that Ascentage remains under the radar to most investors who focus on hematology, and we believe the clinical development program for both drugs are quite de-risked heading into three pivotal readouts over 2027,” Young wrote.

Ascentage’s lead drug, olverembatinib (HQP1351), is a third-generation tyrosine kinase inhibitor approved in China for certain patients with chronic myeloid leukemia (CML).

The treatment targets patients with specific genetic mutations or those who have developed resistance or intolerance to earlier-generation therapies.

Based on previous clinical results, William Blair sees a strong possibility of positive trial outcomes in 2027.

Ascentage expects to complete enrollment in its global registration trials for olverembatinib by late 2026 or early 2027.

The timeline positions the company’s POLARIS-1, POLARIS-2 and GLORA-4 studies for potential data readouts in 2027, with regulatory approvals possible in 2028.

William Blair estimates unadjusted peak olverembatinib sales of $1.5 billion in CML, assigning a 70% probability of success.

The firm projects total olverembatinib sales of $1.7 billion. Under its partnership with Takeda Pharmaceutical Co. Ltd. (TAK), Ascentage is eligible to receive royalties ranging from 12% to 19%.

Lisaftoclax Could Unlock Another $2.7 Billion Opportunity

Beyond olverembatinib, William Blair sees substantial commercial potential in Ascentage’s unpartnered lisaftoclax program.

The drug is being studied in patients with high-risk myelodysplastic syndromes (MDS) and chronic lymphocytic leukemia or small lymphocytic lymphoma (CLL/SLL).

The GLORA-4 study in high-risk MDS represents a particularly important opportunity.

Young believes positive results could differentiate lisaftoclax from competing treatments and potentially establish it as the first approved therapy for the targeted patient population.

William Blair estimates unadjusted peak lisaftoclax sales of $2.7 billion in 2032, assigning a 50% probability of success.

Together, the two drug programs could strengthen Ascentage’s position in the global blood cancer treatment market.

AAPG Price Action

AAPG Price Action: Ascentage Pharma Group shares were up 4.22% at $15.31 at the time of publication on Friday, according to market data.