One of the hottest ASX healthcare stocks this year has been Vitrafy Life Sciences Ltd (ASX: VFY).
Year to date, it has risen almost 190%.
A new report from Bell Potter indicates there is plenty more growth to come as this ASX healthcare stock looks to address a crisis that could help it become a major Australian healthcare success story.
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Company overview
Vitrafy Life Sciences was founded in November 2017 with a mission to become a global leader in cryopreservation by significantly improving cell survival of biological materials.
Vitrafy has designed and developed an innovative solution for the advancement of cryopreservation.
One of these devices is Lifechain – an integrated, cloud-based software platform, to provide a complete, vertically integrated cryopreservation solution to retain the quality of cryopreserved biomaterials.
FY26 result highlights
This ASX healthcare company released full-year results yesterday.
The company reported a FY26 net loss of $16.2 million, which was slightly better than what Bell Potter expected and an improvement on last year.
The company spent more cash during the year as it invested heavily in building its US operations, regulatory approvals, and commercial activities.
After raising $30 million, it finished the year with $41.2 million in cash, although it will likely need more funding before it becomes profitable.
Major turning point
According to yesterday's report, Bell Potter believes this ASX healthcare stock is nearing a major turning point.
A successful US military platelet study has generated interest from the civilian healthcare market, while problems with the US blood supply system have created a significant opportunity for the Guardion technology as it approaches FDA approval.
The broker also sees potential in cell and gene therapy, with the first revenue-generating contract possible in the first half of FY27, and in animal reproduction, where a joint commercial launch could occur within the next 6 to 9 months.
Upside intact
Bell Potter has maintained its speculative buy rating and $5.15 price target, believing commercial revenue could begin in FY27 across all three target markets.
The broker said if the company secures FDA approval and signs its first commercial contracts, the company could generate significant shareholder value and benefit from what it sees as a transformational opportunity in the US blood sector.
From current levels, the price target from Bell Potter indicates an upside potential of approximately 40%.
We consider the US blood sector crisis may become transformational for VFY, building into an Aussie champion.
