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Are these the next ASX biotech stars?

All the way back in 2003 CSL Limited (ASX: CSL) shares were changing hands at under $12.00.

Fifteen years later those same shares have increased in value by over 1,200% and recently traded as high as $159.62.

While only time will tell whether the biotech shares listed below can have similar success, I think they are well worth keeping a close eye on.

Botanix Pharmaceuticals Ltd (ASX: BOT)

In February this dermatology company raised $15 million through a placement of shares at an issue price of 11 cents per share. The funds raised are to be used to accelerate clinical development of its lead acne product, BTX 1503, and progress other key pipeline products. I think BTX 1503 is a very exciting product and have been impressed with its early results. It uses a synthetic cannabidiol to treat moderate to severe acne and, importantly, does not come with the horrific side effects that existing products have. The acne prescription market is expected to be worth up to US$4.5 billion this year, meaning this drug could have significant potential if its trials are a success.

Cynata Therapeutics Ltd (ASX: CYP)

Through its impressive Cymerus technology, Cynata Therapeutics is able to produce an unlimited number of high quality and consistent stem cells at a low cost. These stem cells can then be used to treat a number of diseases including Graft versus Host Disease (GvHD) through it lead CYP-001 mesenchymal stem cell (MSC) product. The market opportunity for this treatment alone is estimated to be US$300 million a year. Pleasingly, the company advised recently that CYP-001 has been granted Orphan Drug Designation by the United Stated Food and Drug Administration.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix is a clinical-stage biopharmaceutical company focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals. Its CEO, Dr Christian Behrenbruch, is very respected in the industry and has a solid track record of success in the field. This morning the company advised that its joint venture with Kyzeo Imaging has entered into a material contract with US-listed Endocyte in relation to providing imaging technology for Endocyte’s phase III trial of Lu-PSMA-617. This is just one of a number of positive developments ongoing or in the pipeline, making it one to watch in my opinion.

Where to invest $1,000 right now

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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. 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 Scott Phillips.

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