Why this ASX biotech stock could rise a massive 40%

If you’re on the lookout for big returns, then you may want to check out Clarity Pharmaceuticals Ltd (ASX: CU6).

That’s because analysts at Bell Potter believe that the ASX biotech stock could generate big returns for investors with a high tolerance for risk over the next 12 months.

What is the broker saying about this ASX biotech stock?

According to a note, the broker was pleased with its recent announcement relating to the SECuRE trial, which is investigating the therapeutic qualities of 67Cu-SAR-bisPSMA in metastatic castrate resistant prostate cancer (mCRPC).

That announcement revealed that the preliminary data showed that despite having high levels of prostate-specific antigen (PSA) and having received multiple treatments, 60% of participants across all cohorts showed reductions in PSA levels of greater than 35% from a single therapy cycle of 67Cu-SAR-bisPSMA.

In addition, no dose limiting toxicities (DLTs) have been reported in cohort 3 to date, with most adverse events being mild or moderate and comfortably below levels that would cause investigators genuine concern.

In response to the trial data, Bell Potter said:

All cohorts have shown encouraging levels of reduction in PSA from a single dose of therapy. The announcement does not include progression free survival data, however, case studies from the EAP group which have now received multiple doses are highly encouraging, both from a safety and efficacy standpoint. Each of these patients remains alive and apparently with no disease progression, many months after commencing treatment. In one case PSA has reduced to undetectable levels with PET imaging showing a near complete response.

In summary, very pleasing data from SECuRE, strongly supportive of further investigation.

Major upside ahead

Bell Potter has held firm with its speculative buy rating and $3.90 price target on the ASX biotech stock.

Based on its current share price of $2.75, this implies potential upside of 42% for investors over next 12 months.

Though, it is worth remembering that its rating comes with a speculative tag. This means it may only be suitable for investors with a high tolerance for risk.

The post Why this ASX biotech stock could rise a massive 40% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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