While a 10% return, which is in line with historical averages, is always welcome, some ASX stocks have the potential to deliver even more.
One such stock is Clarity Pharmaceuticals Ltd (ASX: CU6), according to Bell Potter.
Let's see what the broker is saying about the radiopharmaceuticals company.
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What is the broker saying?
Bell Potter highlights that the peer-reviewed paper from the ASX healthcare stock's Co-PSMA trial has now been released. It points out that there have been some very positive things said about the trial by investigators. It explains:
The trial demonstrated that 64Cu-bisPSMA has a significantly higher detection rate compared to a current standard-of-care 68Ga PSMA-11 PET/CT in BCR post radical prostatectomy at PSA levels between 0.2 And 0.75 ng/ml, with consequently higher composite reference standard true positive and lower false negative findings.
This is the first time that a PSMA-targeted imaging agent has demonstrated significantly improved imaging characteristics compared to those currently available, potentially marking an important step forward in imaging technology akin to that seen in the evolution from 18F-Choline/Flucyclovine to PSMA-targeted PET/CT. High praise indeed.
Bell Potter highlights that the investigator concluded that it could be the biggest breakthrough in PSMA imaging since the conversion from 18F-Choline PET imaging. It adds:
64Cu-bisPSMA detected nearly 3x as many tumours in the fossa as 68Ga-PSMA11. The fossa is the anatomical space formerly occupied by the prostate gland prior to prostatectomy and is also the region at highest risk of biochemical recurrence. The vastly improved detection rate in this region is major driver of the investigator's conclusion that 64Cu-SAR-bisPSMA is the biggest break though in PSMA imaging since the conversion from 18F-Choline PET imaging.
Big potential returns
According to the note, the broker has retained its speculative buy rating on the ASX healthcare stock with an improved price target of $6.50.
Based on its current share price of $3.33, this implies potential upside of 95% for investors over the next 12 months.
Commenting on the company, the broker said:
The body of clinical data across Co-PSMA, Propeller and COBRA collectively demonstrate the superiority of 64Cu-bisPMSA at all points across the patient journey with metastatic disease. The company expects to submit the NDA following completion of both AMPLIFY and CLARIFY pivotal studies in the coming months.
