These 2 ASX healthcare shares have had an ordinary start to 2026.
Telix Pharmaceuticals Ltd (ASX: TLX) and Neuren Pharmaceuticals Ltd (ASX: NEU) shares have lost 21% and 31% respectively this year so far.
However, both ASX healthcare shares offer exposure to innovative healthcare solutions with meaningful growth runways. Brokers tip explosive upside for the ASX biotech shares. Let's find out why.
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Telix Pharmaceuticals
The price of this ASX healthcare share has delivered standout gains over the past 12 months, peaking at $31.97 almost a year ago. Since then, Telix has dropped 67% in value to $8.84 at the time of writing.
Telix develops radiopharmaceuticals for cancer diagnosis and treatment, blending biotech innovation with specialised manufacturing and global distribution.
What sets Telix apart is its shift from development-stage hopeful to commercial operator. As approvals turn into broader clinical use, revenue can ramp quickly, without rebuilding the platform each time.
Growth now hinges on adoption and market penetration, not economic cycles. That brings volatility. But it also gives investors exposure to a healthcare niche where innovation can flow straight through to earnings.
Investors have been drawn to the company's accelerating revenue from its prostate cancer imaging product, Illuccix. Recent financial results showed strong revenue growth and improving profitability.
However, the risks are real. Biotech companies remain vulnerable to regulatory hurdles, trial delays, and shifting investor sentiment. The ASX healthcare share also continues to invest heavily in research and development. This means earnings can fluctuate as it balances growth with cost discipline.
Most brokers have a positive recommendation on the ASX healthcare share. Citi just reiterated its buy rating on Telix with a price target of $34. This suggests a massive 285% upside.
TD Cowen also has a buy rating but lowered its price target from $25 to $20, which still points to a possible gain of 126%.
Neuren Pharmaceuticals
Neuren's path has been more uneven. After reaching significant highs in 2024, the $2 billion ASX healthcare share retreated sharply. Since reaching a 52-week high of $22.99 in October, it has lost 44% to $12.80 at the time of writing.
Despite this, the company has continued to generate royalty income from DAYBUE, its approved therapy for Rett syndrome. Growing royalties provide a meaningful revenue base and help distinguish Neuren from earlier-stage biotech peers that rely purely on trial outcomes.
Looking ahead, much of Neuren's investment case rests on its broader pipeline, particularly the development of NNZ-2591 for multiple rare neurological disorders. Phase 3 trial progress and further regulatory engagement could act as powerful share price catalysts if results are positive.
Yet the risks are equally clear. Biotech valuations can swing dramatically on clinical updates, and pipeline programs remain inherently uncertain. Neuren's share price volatility over the past year is a reminder that even companies with approved products are not immune to market re-rating.
Most brokers see the ASX biotech stock as a strong buy. They have set a 12-month price target of $23.74, which points to an 85.5% plus.
Analysts at Bell Potter see significant value in this ASX healthcare share at current levels. Last week, the broker reaffirmed its buy rating with a $22 price target. This implies potential upside of 71% for investors over the next 12 months.
