ASX biotech shares incurred heavy losses in FY22 as investors piled out of risk assets and moved into higher-quality corners of the market.
Here's a closer look at three noteworthy ASX biotech shares and their outlook for FY23.
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CSL Ltd (ASX: CSL)
Shares in the biotech giant gyrated last year but analysts tip they'll deliver upside in FY23. Citi rates this ASX share a buy on a $330 valuation.
The Citi team say that CSL should benefit now that COVID-19 has wound back and blood plasma collections can resume en masse.
It forecasts around 20% growth in earnings per share (EPS) for CSL this financial year, as the market "shift[s] its focus to the strong underlying plasma product demand."
Not only that, but CSL announced its acquisition of Vifor Pharma last year, and is likely to book its first round of revenue from the transaction in FY23.
This could weigh on the CSL share price if everything goes well.
Imugene Ltd (ASX: IMU)
Shares in Imugene have caught a bid lately and are up 33% in the past week. After booking heavy losses last financial year, things could be looking different in FY23 for the ASX biotech share.
As TMF reported last week, "Imugene advised it has appointed a new executive director and clinical scientist."
That was Dr Sharon Yavrom, who comes with nearly 20 years of industry experience.
The latest results of its HER-Vaxx Phase 2 study were also a positive catalyst for the share price.
The HER-Vaxx segment is sure to be integral to Imugene's growth narrative looking ahead, as it was in FY22.
Immutep Ltd (ASX: IMM)
Another ASX biotech share worth mentioning for FY23 is Immutep. The company is focused on developing novel oncology solutions through its lead drug compound, etfi.
Immutep shares underperformed in FY22, with investors incurring a substantial on-paper loss. But the biotech share caught a bid in the first week of July following a company announcement.
Immutep advised that part A of the phase II TACTI-002 trial met its primary objective, showing favourable anti-tumour activity.
The study was evaluating efti in combination with MSD's pembrolizumab in 114 patients.
Investors reacted favourably after digesting the news.
The wider healthcare sector has also been strengthening in early FY23.
