Why is this ASX biotech charging more than 10% higher?

Shares in Clarity Pharmaceuticals Ltd (ASX: CU6) were trading more than 10% higher in early trade on Monday after the company said it was going to present data from studies of its prostate cancer detection compound at an esteemed European medical conference.

But what was perhaps more compelling in the company’s announcement was a first person account from a patient who had used the company’s compound and had benefited greatly from it.

New detection methods being developed

Clarity has developed two radiopharmaceutical compounds called 64Cu-SAR-bisPSMA and 67Cu-SAR-bisPSMA which its studies to date show perform well compared with existing detection methods.

The company said it will present various data relating to the compounds at the European Association of Nuclear Medicine (EANM) Annual Congress 2026, which is being held in October in Vienna.

The biotechnology company said regarding the conference:

EANM 2026 Annual Congress is one of the world’s leading nuclear medicine conferences and the acceptance of these abstracts is testament to the strength of the data generated by Clarity’s products and the promising prospects for SAR-bisPSMA to change the paradigm in the diagnosis and treatment of prostate cancer.

The company said one of its trials which will be presented, “demonstrated improved diagnostic performance of 64Cu-SAR-bisPSMA next-day imaging vs. 68Ga-PSMA-11 across all key parameters assessed, including mean number of lesions per participant, total number of lesions, true positive rate and proportion of participants with a positive scan”.

The company will also present data from three client case studies, and said the use of its compound, “changed planned clinical management in all three patients”.

One of the patients, Steve Hunter, also supplied a testimonial.

Compelling first person account

Mr Hunter said he was diagnosed with prostate cancer in 2016, and while his initial treatment was quite successful, blood tests revealed in 2023 that his cancer had returned.

He said:

With SOC PSMA imaging currently available, no lesions were detectable. I was informed by more than one doctor that what I had was a micro-metastatic version of prostate cancer; that is, I had a large number of cancers too small to be detected.

Mr Hunter, himself a medical professional with a history including oncology research, approached Clarity with a view to trying its technology.

He said:

The results were beyond my expectations. Three tumours were found and I underwent targeted external beam radiation. Since then, I have repeated this process with Clarity and (Dr Alan Taylor’s) support a few times to scan, find and subsequently treat the ensuant small number of tumours that arise, with stereotactic radiation therapy. I am so grateful to Clarity in making these scans available. This approach has proven to be highly successful by allowing me to obtain clear information about my disease and defer requiring ADT therapy and all the associated side effects with this treatment.

Clarity shares were trading 14.1% higher at $2.07.  

The post Why is this ASX biotech charging more than 10% higher? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.