Looking for some big returns to supercharge your investment portfolio? If you are, then it could be worth checking out the ASX 200 share in this article.
That's because the team at Bell Potter believes it has the potential to rise almost 50% from current levels.
Which ASX 200 share?
The share in question is biopharmaceuticals company Neuren Pharmaceuticals Ltd (ASX: NEU).
According to a note from this morning, the broker is feeling optimistic about the ASX 200 share's phase 3 trial of NNZ-2591 in Phelan-McDermid syndrome.
Commenting on NNZ-2591, Bell Potter said:
Like NEU's first asset Daybue in Rett syndrome, Phelan-McDermid syndrome (PMS) is a rare disease with huge unmet need considering no treatment options are approved for these severely impacted patients. NNZ-2591 is by far the most advanced asset in development for PMS with clear first-to-market potential in this commercially attractive indication. Beyond PMS, NNZ-2591 has multiple additional opportunities in Pitt Hopkins and Angelman syndrome that could also commence Phase 3 trials in CY26.
Big return potential
In light of the above, its massive cash balance, and stream of royalty payments, the broker sees significant value in this ASX 200 share at current levels.
The note reveals that Bell Potter has reaffirmed its buy rating and $20.00 price target on its shares.
Based on its current share price of $13.39, this implies potential upside of 49% for investors over the next 12 months.
Explaining its buy recommendation for the biopharmaceutical stock, the broker said:
Neuren is in an envious financial position having A$341m in cash and no debt as of 31-March-2025. This will continue to be supplemented by ongoing royalty income over the coming years derived from Daybue sales, allowing NEU to fund multiple Phase 3 trials with NNZ-2591 and advance the asset through the all-important and final clinical step before potential approval.
We value the future global licensing income from Daybue at ~$8.50/sh ($1.06b) and current cash balance at ~$2.50/sh ($341m), implying a residual value of ~$3/sh ($350m) at current prices for the NNZ-2591 asset, which appears very attractive in our view. Upcoming key catalysts include start of the Ph3 trial in PMS (mid CY25), Q2 CY25 Acadia result (early August) and potential EMA approval (Q1 CY26). Maintain BUY recommendation and $20.00 PT.
All in all, this could make Neuren worth considering if you are looking for exposure to the healthcare sector.
