If you are hunting outsized returns for your portfolio and have a high risk tolerance, then read on.
This article looks at one ASX share that Bell Potter believes could more than double in value over the next 12 months.
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Which ASX share?
The stock that Bell Potter is bullish on is Paradigm Biopharmaceuticals Ltd (ASX: PAR).
It is an Australian biotechnology company focused on repurposing Pentosan Polysulfate Sodium (PPS) under the brand name Zilosul for the treatment of osteoarthritis (OA) in the knee.
Bell Potter notes that the global market for a safe, effective treatment that provides superior patient outcomes compared to the standard of care is a multiple blockbuster.
The good news is that the recently completed phase 2 study produced some highly encouraging results that it believes are worthy of further clinical trials.
Speaking of which, Bell Potter points out that enrolment for a phase 3 trial is now complete. It said:
PAR has achieved a key milestone in the development of iPPS for the treatment of osteoarthritis of the knee with the announcement of completion of enrolment of the first of its Phase 3 clinical trials. Enrolment was extended to 538 participants – 72 more than anticipated following a period of rapid enrolment in Japan and Moldova. Numerous patients had met the enrolment criteria and it was decided to include these for ethical reasons with the added benefit of increasing the powering of the study.
Bell Potter was impressed with the way that management completed this enrolment in a cost-efficient manner. It adds:
PAR has been phenomenally cost-efficient spending a mere A$27m on PARA_OA_012 over the course of the first 9 months of FY26 during which it completed 50% enrolment, with remaining participants (~300) enrolled in a little over 2 months since 31 March. This rapid enrolment has been a function meticulous planning and the exhaustive clinical program in the period leading into the phase 3 trial where the clinical outcomes had consistently indicated highly effective reduction in pain (when dosed at the 2mg/kg twice weekly dose) with an attractive adverse event profile.
Big potential returns
According to the note, the broker has retained its speculative buy rating on the company's shares with a reduced price target of 45 cents (from 65 cents).
Based on its current share price of 17 cents, this implies potential upside of more than 160% for investors over the next 12 months.
Commenting on its recommendation, Bell Potter said:
Enrolment is complete and PARA_OA_012 is in the home straight, now awaiting interim and headline data in the coming months. Following the recent cap raise, the company has $40m in notional cash inclusive of undrawn credit with a further $5.4m from R&D tax refund also due in the coming months. Cash burn is currently $11m/qtr and expected to step down over the next 6 months as participant screening and recruitment reduces to nil. The company will require significant additional funding for a confirmatory Phase 3, however, the upcoming data will be instrumental to valuation.
