Lucid Capital Markets has initiated coverage of Adlai Nortye Ltd. (NASDAQ: ANL) with a Buy recommendation and a price target of $11.00, which the firm says represents roughly a 217% upside from the stock's current trading price of $3.47. The initiation comes as the clinical-stage biotechnology company has posted strong market momentum, evidenced by a 144% year-to-date gain cited from InvestingPro data.
At the center of Lucid's valuation is AN9025, Adlai Nortye's investigational pan-RAS inhibitor. The analyst team views this asset as the principal value driver for the company if clinical development progresses and the program is de-risked. In modeling the company's upside, Lucid allocates about $9 of the $11 target to AN9025, with the remaining approximately $2 per share ascribed to the broader pipeline and platform.
Lucid characterizes AN9025's preclinical profile as compelling when compared to selected competitors, but it stresses that confirmatory data from human clinical trials will be required to validate any therapeutic advantages. The pan-RAS approach targets cancers driven by RAS mutations, which Lucid notes account for more than 30% of all cancers, underscoring the potential scale if the program proves successful.
In its forecast, Lucid projects the AN9025 opportunity could translate into roughly $3.2 billion in peak non-risk adjusted revenues. The firm expects that meaningful de-risking could occur as potential clinical data readouts approach in 2026, a timeline Lucid uses to justify part of its upside case.
While the valuation work emphasizes the promise of AN9025, the firm also highlights balance-sheet realities. Adlai Nortye finished the first half of 2025 with about $44.1 million in cash and equivalents, and Lucid notes the company may require additional financing in the near term. Supporting that liquidity concern, InvestingPro data cited in the coverage indicates the company is "quickly burning through cash," listing an EBITDA of -$41.88 million and a debt-to-equity ratio of 5.63.
Separately, Adlai Nortye recently agreed to a licensing transaction with ASK Pharm valued at $230 million. The arrangement grants ASK Pharm exclusive rights to develop, manufacture, and commercialize AN9025 within mainland China, Hong Kong, and Macao, while Adlai Nortye retains rights to the asset outside those territories. Lucid frames the deal as a strategic step to advance AN9025's development and commercialization in Greater China through a regional partner focused on those markets, while Adlai Nortye concentrates on the rest of the world.
Overall, Lucid's initiation ties a substantial portion of its Buy thesis to the future clinical performance and commercialization prospects of AN9025, while also drawing attention to near-term funding needs and current negative operating results. Investors seeking additional financial metrics and analysis were directed to resources that provide further company data and proprietary 'ProTips.' The coverage presents a clear upside case driven by a single lead asset alongside tangible financial and execution risks.
Note: The article reports analyst views and company-reported financial figures without endorsement or recommendation beyond the coverage described.