Looking to add a few small-cap ASX healthcare stocks to your portfolio with some outsized growth potential?
Considering that the small-cap sector's potential for outsized share price gains comes with added risks, we take a look at two ASX healthcare stocks fund managers have tipped as buys.
ASX biotech stock well-funded post-capital raise
The first small-cap company tipped as a buy is Opthea Ltd (ASX: OPT), according to Medallion Financial Group's Philippe Bui (courtesy of The Bull).
"This biopharmaceutical company is developing a new drug for macular degeneration. Macular degeneration is the leading cause of blindness for people aged 50 and older," Bui said.
And it could be well worth owning some shares in this ASX healthcare stock before mid-2025.
"The company is in the process of completing US Food and Drug Administration phase 3 clinical trials, with results due in the June quarter of 2025," Bui explained.
Success with those FDA trials would potentially offer a sizeable boost to the Opthea share price.
And Opthea's balance sheet is in solid shape.
"The company has lifted available funds following a capital raising at 40 cents a share," Bui said.
At Opthea's latest quarterly results, the company reported a cash balance of US$172.4 million as of 30 June, up from US$101.6 million in the prior quarter.
The Opthea share price has increased 32% over the past 12 months, closing at 54 cents a share on Monday.
Which brings us to the second small-cap ASX healthcare stock tipped as a buy (courtesy of The Bull).
Small-cap ASX healthcare stock could expand into US
BW Equities' Tom Bleakley has a buy rating on Botanix Pharmaceuticals Ltd (ASX: BOT), with the US FDA also in playing a role in its fortunes.
"The FDA has approved Botanix Pharmaceuticals' Sofdra topical gel, a prescription medicine for treating primary axillary hyperhidrosis (excessive underarm sweating) in adults and children aged nine and beyond," Bleakley said.
Bleakley added:
The product is already marketed in Japan, but the US potentially provides a much bigger opportunity. BOT, a clinical dermatology company, says about 10 million people in the US suffer from excessive underarm sweating.
FDA approval paints a brighter revenue outlook.
The Botanix share price has rocketed 100% over the past 12 months, closing yesterday at 36 cents a share.
The small-cap ASX healthcare stock completed a successful institutional placement in June, raising $70 million.
As at 30 June, Botanix had a cash position of $79.3 million with no debt.
