There could be some very big gains ahead for Clinuvel Pharmaceuticals Limited (ASX: CUV) shares according to the team at Bell Potter.
Its analysts have just initiated coverage on the ASX 300 healthcare share with a valuation significantly higher than current levels.
What is the broker saying about this ASX 300 healthcare share?
According to the note, the broker believes there's a lot to like about the company.
It highlights that Clinuvel is "one of very few ASX-listed biopharma companies directly commercialising novel pharmaceuticals across the US and EU in a highly profitable manner."
This is of course through the company's Scenesse product. It is the only approved treatment for patients suffering from a rare inherited disease called erythropoietic protoporphyria (EPP).
EPP results in the accumulation of protoporphyrins in red blood cells that causes acute, painful, non-blistering photosensitivity (exposure to sunlight).
Clinuvel isn't settling at that, though. It is also looking to expand the usage of Scenesse beyond EPP into vitiligo, XP, VP and stroke. In addition, it is developing additional melanocortin pharmaceuticals and launching a range of topical photo cosmetic consumer products.
In light of the above, the broker believes that the ASX 300 healthcare share is well-positioned for strong growth in the coming years. It commented:
We expect continued free cash flow growth in the near-term without any competition in EPP for at least three years. Clinuvel has multiple development streams ongoing to drive medium to long-term growth, for which we expect approval of Scenesse in vitiligo (~FY28) and launch of Neuracthel (~FY27) to be the largest potential growth drivers.
Big gains ahead for Clinuvel shares
The note reveals that the broker has a buy rating and a $24 price target on Clinuvel's shares.
Based on its current share price of $14.76, this implies a potential upside of almost 63% for investors over the next 12 months.
