MENU

Why the Clinuvel Pharmaceuticals Limited (ASX:CUV) share price is rocketing today

Shares in Clinuvel Pharmaceuticals Limited (ASX: CUV) surged 14% to $12.15 on Monday, as the company advanced its plans to launch its flagship product in the USA.

Clinuvel is a small-cap biopharmaceutical company, specialised in skin disorders. Its main product is Scenesse, a photoprotective drug used to treat a rare condition known as EPP.

The medicine has already received marketing authorisation in the EU. Today, Clinuvel announced an application to the United States Food and Drug Administration (FDA) for the use of Scenesse as the first proposed therapy for patients with EPP in the USA. The FDA may provide a response as soon as early 2019.

In the first half of FY18, Clinuvel had revenue of just $7 million, enough to generate positive cash flows and NPAT of $1.4 million. The stock trades at a sky-high P/E ratio of 100.

Receiving marketing authorisation in the USA would significantly boost Clinuvel’s revenue base, but the real game changer for the company would be the adoption of Scenesse in the treatment of other skin disorders. The medicine is being tested for vitiligo, a rather common condition causing depigmented patches of skin.

But there are also other innovative companies poised to outperform competitors in 2018. Click here to find out about these new opportunities.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We're living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That's why at The Motley Fool we've been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We've found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor Tommaso Autorino has no position in any of the 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 Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.