Nurix Therapeutics (NRIX) has kicked off its DAYBreak registrational Phase 2 trial for bexobrutideg in relapsed or refractory chronic lymphocytic leukemia after reaching regulatory agreement on dosing, following encouraging Phase 1 efficacy and durability data.

The DAYBreak launch comes after a strong 90 day share price return of about 40%, even though the 1 year total shareholder return is a loss of around 9%. This suggests recent momentum has picked up while longer term holders remain only modestly ahead over three years.

If this kind of clinical progress has your attention, it could be a good moment to see what else is happening across healthcare stocks and spot other potential candidates for your watchlist.

With Nurix now in a registrational trial and the share price up about 40% over 90 days, but still showing a 1-year loss of around 9%, is this a fresh opportunity or is the market already pricing in future growth?

Preferred Price-to-Sales Multiple of 21.6x: Is It Justified?

Nurix Therapeutics last closed at $17.87 and is currently trading on a P/S ratio of 21.6x, which sits well above both peers and the wider US biotech industry.

The P/S ratio compares a company’s market value to its revenue. For a clinical stage biotech like Nurix that is loss making, it often becomes a primary reference point for how the market is valuing its pipeline and potential future revenue rather than current profitability.

In Nurix’s case, analysts are in good agreement that the share price could rise by 65.6% from here, and revenue is forecast to grow 33.8% per year compared to 10.6% for the broader US market. That backdrop can help explain why the market is willing to accept a richer revenue multiple even though Nurix is currently unprofitable and is forecast to remain so over the next three years.

However, the current 21.6x P/S sits significantly above both the peer average of 10.2x and the US biotechs industry average of 11.9x. It is also far above the estimated fair P/S ratio of 0.2x that our regression based fair ratio model suggests the market could eventually lean toward.

Result: Price-to-Sales of 21.6x (OVERVALUED)

However, you still have to weigh real risks, including ongoing net losses of $244.785 million and the possibility that clinical or partnership progress does not match expectations.

Build Your Own Nurix Therapeutics Narrative

If you feel differently about these numbers or prefer to test your own assumptions, you can quickly build a personalised thesis and Do it your way in just a few minutes.

A great starting point for your Nurix Therapeutics research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.