Why the AACR data on rinzimetostat is on investors’ radar

ORIC Pharmaceuticals (ORIC) shares are in focus after the company highlighted new preclinical data for rinzimetostat at the 2026 AACR Annual Meeting, centered on prostate cancer models that include treatment resistant disease.

ORIC’s latest AACR posters on rinzimetostat arrive after a strong year to date, with a 33.29% year to date share price return and a 123.61% 1 year total shareholder return, while shorter term share price returns over one and three months reflect some cooling of momentum.

If you are watching how oncology names react to new data updates, it can also be useful to scan other healthcare focused AI opportunities using our 35 healthcare AI stocks.

With ORIC now a roughly US$1.1b clinical stage biotech, a 33% YTD gain and a very large intrinsic discount metric on some models, you have to ask: is there still an opportunity here, or is the market already pricing in future growth?

Preferred price to book ratio of 2.8x: Is it justified?

On traditional metrics ORIC does not look cheap, with a price to book ratio of 2.8x compared with the US Biotechs industry average of 2.5x, even though it is unprofitable and carries a market cap of about $1.1b.

The price to book ratio compares the share price to the company’s net assets per share, which can be a common yardstick for early stage biotechs that have little or no revenue. For ORIC, the lack of meaningful revenue, ongoing net losses of $129.47m and forecasts that the company is not expected to reach profitability or generate revenue over the next 3 years put more weight on what investors are willing to pay for its asset base and pipeline.

Relative to the broader US Biotechs industry, ORIC screens as slightly expensive on this metric, yet it is described as good value versus a peer group average P/B of 4.7x. It is also assessed as trading at a 74.2% discount to an internal fair value estimate and below an SWS DCF model future cash flow value of $42.25 per share, compared with the last close at $10.89. For investors, that contrast between a richer headline P/B ratio and a very large implied discount on some models underlines how sentiment is currently leaning toward the potential of the pipeline rather than the current financials, while still pricing ORIC above the typical biotech name on a book value basis.

Result: Price to book ratio of 2.8x (ABOUT RIGHT)

However, investors also need to weigh clinical trial uncertainty for rinzimetostat and enozertinib, as well as the ongoing net loss of $129.47m with no current revenue.

Another angle on value: DCF vs P/B

The P/B of 2.8x paints ORIC as only slightly expensive versus the US Biotechs industry average of 2.5x, and cheaper than peers at 4.7x. Yet our DCF model points to a future cash flow value of $42.25 per share, far above the $10.89 last close. Which signal matters more to you?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out ORIC Pharmaceuticals for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 63 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With sentiment clearly split between promise and risk, this is a moment to look at the numbers yourself and move quickly to form your own view using our 1 key reward and 5 important warning signs

Looking for more investment ideas?

If ORIC is already on your watchlist, do not stop there; broaden your opportunity set with a few targeted screens that surface very different kinds of stocks.

• Target potential value opportunities by scanning 63 high quality undervalued stocks that pair solid balance sheets with appealing price tags.
• Strengthen your income focus by checking out 13 dividend fortresses that aim for yields of 5% or more with an eye on resilience.
• Spot potential early movers by reviewing the screener containing 23 high quality undiscovered gems before they are widely discussed.

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.