The drug with the 'potential to become a blockbuster' for this ASX 200 healthcare company: Citi

What's ahead for this biotechnology giant?

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Key points
  • This ASX 200 healthcare company has a potential 'blockbuster' among its product pipeline
  • The treatment is at a phase three trial stage currently 
  • The shares in this company have fallen 6% in the past year 

ASX 200 healthcare company CSL Limited (ASX: CSL) has a drug candidate in its pipeline that could be a 'blockbuster' in the future, Citi analysts believe.

The CSL share price climbed 1.47% today and closed at $290.75. For perspective, the S&P/ASX 200 Index (ASX: XJO) fell 0.07% today.

Let's take a look at what could be ahead for this ASX 200 healthcare company.

Two researchers discussing results of a study with each other.

Image source: Getty Images

What's ahead

CSL is an ASX biotech giant that develops a huge range of biotherapies and vaccines to save and improve lives.

CSL's drug candidate for reducing secondary heart attacks is a major positive for the company, according to analysts.

Commenting on CSL112, a drug currently at the phase three clinical trial stage, Citi analysts, quoted by The Age, said:

If approved, CSL112 has the potential to become blockbuster drug for CSL.

In an update in November, CSL said recruitment for this trial is on track for "Last Patient In" (LPI) by the end of the year.

Launch of CS112 is on track for the fourth quarter of 2025, according to CSL.

As my Foolish colleague James reported recently, Citi has a buy rating and a $340 price target on the CSL share price. Analysts said:

Our $340 TP includes $22.40 for the R&D portfolio (down from $23 on delays) – the main asset remains CSL112 (cardiovascular) at $20/share on which we will get Phase 3 data in Q1 CY24. Maintain Buy, $340 TP.

Meanwhile, Morgans is also impressed with Citi's research and development pipeline, including CSL112. Morgans placed an add rating and $312.20 price target on the company's share price.

CSL share price snapshot

The CSL share price has fallen 6% in the past year, while it has climbed 0.1% in the year to date.

For perspective, the ASX 200 has fallen 4.40% in the past year.

CSL has a market capitalisation of about $140.2 billion based on the current share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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.

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