Nuvation Bio's Valuation After Eisai Licensing Deal: A Closer Look

Nuvation Bio (NUVB) recently signed an exclusive license and collaboration deal with Eisai, which brings upfront, milestone, and royalty income. The deal comes after a sharp pullback, with a 7-day share price return of 27.34% and a 30-day decline of 29.10%. However, NUVB trades at a rich P/B ratio of 6.5x, inviting questions about market expectations. Our DCF model estimates a fair value of $42.40 per share, well above the last close of $6.14, implying a wide gap between market price and estimated value.