It's an interesting thing to look back on an ASX stock that you don't own and see a giant that you wish you did own. For one, it usually leads to that sense of regret of not finding that winner sooner, of missing out on the incredible windfall gains that it has showered on to its lucky investors. But it can also renew our resolve to invest in ASX stocks and find the inevitable next winner.
That's what all investors have to confront today when it comes to the Clarity Pharmaceuticals Ltd (ASX: CU6) share price.
This ASX pharmaceutical stock has been an unbridled winner for ASX investors over the past 12 months. A year ago, shares of this company were going for just 88 cents each. Today, those same shares are currently trading for $6.11.
Now that might be down a chunky 2.7% for the day thus far. But Clarity shares still remain up an incredible 594% from where they were this time in 2023.
If it weren't for a rough July so far, this ASX pharmaceuticals stock would be up even higher. As my Fool colleague Bronwyn covered earlier this month, Clarity actually topped out the entire All Ordinaries Index (ASX: XAO) over the 2024 financial year.
This company's shares returned a massive 674.29% over the 12 months to 30 June 2024, rising from 70 cents a share at the start of July 2023 to $5.42 when the markets closed at the end of June.
Despite Clarity's FY2024 success, most of this ASX pharmaceuticals stock's gains came in the back half of the year. In April, to be specific.
Clinical trials behind ASX pharmaceuticals stock's explosive growth
April was the month that Clarity revealed that a prostate cancer patient had a "complete response" to two cycles of Clarity's 67Cu-SAR-bisPSMA treatment, with the patient showing no detectable levels of cancer in the six months following the treatment.
Investors welcomed Clarity's subsequent capital raising, and the ASX pharmaceuticals stock hasn't looked back since.
But let's get down to just how much long-term Clarity investors have banked from this company's gains.
Let's assume our investor managed to spend $5,000 on Clarity shares 12 months ago. As we've established, back on 24 July (22 July last year was a Saturday), Clarity shares closed at 88 cents each. If one had spent $5,000 on this ASX pharmaceuticals stock back then, one would have been able to buy themselves 5,681 shares with some change left over.
If that investor held those 5,681 shares until today, they would be sitting on a Clarity holding worth $34,711 right now. Eat your heart out.
