China approval puts focus on ARS Pharmaceuticals’ new market opportunity

ARS Pharmaceuticals (SPRY) is back on investor radar after partner Pediatrix Therapeutics received approval from China’s National Medical Products Association for community use of neffy, its intranasal epinephrine spray.

This decision makes neffy the first government approved epinephrine product for use outside Chinese hospitals. It creates a fresh addressable market and sets up ARS to collect regulatory milestone payments and ongoing royalties.

Despite the China approval, ARS Pharmaceuticals’ recent share price performance has been weak, with a 7-day share price return of a 18.61% decline and a year-to-date share price return of a 7.48% decline. However, its 3-year total shareholder return of 58.89% points to stronger longer-term momentum.

If this kind of catalyst-driven story interests you, it could be a good moment to see what else is moving among healthcare stocks.

With ARS shares still showing negative 1 year and year to date returns despite annual revenue and net income growth, is the recent China catalyst a mispriced opportunity, or has the market already adjusted for potential future growth?

Most Popular Narrative: 63.1% Undervalued

With ARS Pharmaceuticals last closing at US$10.63 against a narrative fair value of about US$28.83, the gap puts the China news into a wider context.

Successful global rollout initiatives, with neffy launches in Germany and the UK and pending regulatory approvals in Canada, Australia, Japan, and China, create a catalyst for international revenue growth and milestone payments, diversifying and expanding overall revenue streams.

Curious how a single allergy product supports that valuation gap? The narrative leans heavily on rapid revenue expansion, rising margins, and a premium future earnings multiple. Want the full playbook behind those assumptions?

Result: Fair Value of $28.83 (UNDERVALUED)

However, you still need to weigh concentration risk around a single product and the chance that heavy marketing spend fails to translate into sustained neffy adoption.

Build Your Own ARS Pharmaceuticals Narrative

If you see the story differently, or prefer to weigh the numbers yourself, you can build a custom view in just a few minutes with Do it your way.

A great starting point for your ARS Pharmaceuticals research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If ARS has caught your attention, do not stop there. Broaden your watchlist now so you are not kicking yourself for missing the next opportunity.

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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.