Is Ascentage Pharma (AAPG) the Best Performing Healthcare Stock to Buy Now?
6min read The healthcare sector in 2025 has seen notable momentum, driven by breakthrough therapies, aging populations, and regulatory tailwinds. Among smaller players, Ascentage Pharma (NASDAQ: AAPG) has emerged as a compelling story, with its stock rising 27% since its January 2025 IPO. But does this clinical-stage biotech warrant the "best performing" label? Let’s break down the data.
AAPG’s Performance: A Strong Start Post-IPO
Ascentage’s U.S. IPO priced at $17.25 per share on January 23, 2025, and closed at $21.95 by March 31, marking a 27% gain in just over two months. The stock’s market cap now stands at $1.91 billion, classifying it as a small-cap biotech. Technical indicators suggest consolidation between $20.80 (support) and $22.50 (resistance), with a 67% statistical probability of staying within this range.
Financial Highlights (2024):
- Revenue surged 341% to $134.3 million, fueled by its Takeda Pharmaceuticals partnership for olverembatinib (approved in China for chronic myeloid leukemia).
- Net loss narrowed by 56% to -$405.43 million, reflecting operational efficiency.
The company’s late-stage pipeline is the real catalyst. Olverembatinib recently earned Breakthrough Therapy Designation for Philadelphia Chromosome-positive acute lymphoblastic leukemia (Ph+ ALL), accelerating its path to potential approvals. Meanwhile, lisafitoclax (APG-2575)—a Bcl-2 inhibitor for blood cancers—is advancing through late-stage trials, with data expected at major conferences like AACR 2025.
Analyst Sentiment: Late-Stage Assets Drive Optimism
JPMorgan highlighted AAPG’s valuation as “driven by de-risked late-stage assets”, emphasizing olverembatinib and lisafitoclax’s commercial potential. TipRanks recently listed AAPG among its top healthcare picks, citing its “aggressive clinical progress” and “high-margin oncology pipeline”.
However, AAPG isn’t yet a top-tier healthcare stock. In CFRA’s “Best of 2025” rankings, names like Thermo Fisher (TMO) (40% upside) and Danaher (DHR) (38% upside) dominate. AAPG’s smaller scale and reliance on clinical outcomes mean it’s a high-growth, high-risk play compared to established giants.
Catalysts and Risks Ahead
Upside Drivers:
1. Olverembatinib’s Breakthrough Designation: Could lead to faster U.S. FDA approval, expanding its market beyond China.
2. AACR 2025 Data: Five preclinical studies from its apoptosis and protein-protein interaction programs could attract partnerships.
3. Global Expansion: The Nasdaq listing positions AAPG to tap U.S. capital markets for future trials.
Risks:
- Clinical Trial Outcomes: APG-2575’s Phase 3 data for chronic lymphocytic leukemia (CLL) and olverembatinib’s global trials could underwhelm.
- Small-Cap Volatility: AAPG’s $1.91B market cap makes it sensitive to macroeconomic shifts and sector rotation.
Conclusion: A High-Potential, High-Risk Buy
While AAPG isn’t yet a top-ranked healthcare stock, its 341% revenue growth, breakthrough drug designations, and strong analyst support position it as a top pick for aggressive investors. The stock’s post-IPO trajectory and pipeline milestones suggest it could outperform peers in 2025 if clinical catalysts materialize.
Final Take:
- Buy for: Growth-focused investors seeking exposure to oncology breakthroughs.
- Hold for: Those prioritizing stability—wait for APG-2575’s Phase 3 readouts in H2 2025.
- Avoid if: You prefer low-volatility stocks or are wary of biotech’s clinical trial risks.
Ascentage Pharma’s journey from a $17.25 IPO to a $22 stock in months underscores its potential. But with support at $20.80 and resistance at $22.50, AAPG’s next move hinges on data readouts and partnerships. For now, it’s a high-conviction play in a sector hungry for innovation.
Data as of March 31, 2025. Past performance does not guarantee future results.
