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3 biotech shares to watch in FY 2018

All the way back in 2003 CSL Limited (ASX: CSL) shares were changing hands at under $12.00. Fourteen years later those same shares have increased in value by over 1,100% and recently traded as high as $145.00.

While very few would have imagined that the biopharmaceutical company would go onto become a $58 billion behemoth of the industry, those that did have done extremely well out of it.

Only time will tell whether these biotech shares can have similar success, but I think they are well worth keeping a close eye on.

Bionomics Ltd (ASX: BNO)

Although Bionomics has a portfolio of drugs with significant potential, the main attraction in my opinion is its BNC210 anxiety drug. Phase II trial results last year demonstrated that BNC210 not only outperformed the current standard of care, but also exhibited no signs of sedation, memory impairment, addiction, or loss of motor co-ordination. Considering the anxiety treatment market is expected by management to be worth US$18.2 billion in sales by 2020, BNC210 could become an incredibly valuable drug for the company.

Botanix Pharmaceuticals Ltd (ASX: BOT)

Later this year this dermatology company will undertake a Phase 1b trial of its BTX 1503 candidate which uses synthetic cannabidiol to treat moderate to severe acne. Phase 1a trials have proven that the product is safe, and the four-week Phase 1b trial will now test its efficacy. Considering the acne prescription market is expected to be worth up to US$4.5 billion by 2018 and current treatments have horrific side effects, if this trial is a success then I think Botanix could have an extremely bright future ahead of it.

Cynata Therapeutics Ltd (ASX: CYP)

This stem cell and regenerative medicine company is certainly worth keeping an eye on in my opinion. Its impressive Cymerus technology is able to produce an unlimited number of high quality stem cells at a low cost. These stem cells can then be used to treat numerous diseases including Graft versus Host Disease (GvHD) and cardiovascular disease. The company’s major shareholder, Japanese-giant FUJIFILM, has an exclusive worldwide license to market and sell its therapeutic MSC product CYP-001 for the treatment of GvHD.

Where to invest $1,000 right now

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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