ASX biotech stock PYC Therapeutics Ltd (ASX: PYC) has enjoyed a stellar run over the last 12 months.
In that span, its share price has risen over 87%, including 37% in 2026.
A new report from the team at Bell Potter suggests this growth is likely to continue thanks to several tailwinds.
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Company overview
PYC is a clinical-stage biotechnology company developing multiple drug candidates for rare inherited diseases.
The company has its HQ, lab facilities, and majority of staff based in Perth, WA, as well as personnel based in the US for clinical, regulatory, and manufacturing functions.
The company develops novel drug candidates using its internal technology platform, consisting of targeted RNA therapies called antisense oligonucleotides and proprietary drug delivery technology referred to as cell penetrating peptides.
The team at Bell Potter believes its strong growth profile could lead to further growth in the next 12 months.
Making progress
Bell Potter remains positive on this ASX stock.
It has a speculative buy rating and increased price target of $3.00 (previously $2.30) on the company.
Much of the optimism centres around its PYC-003 experimental drug candidate being developed to treat autosomal dominant polycystic kidney disease (ADPKD).
The genetic condition that causes cysts to grow in the kidneys.
Early safety results are encouraging, with only 10% of 50 single-dose subjects reporting treatment-related side effects, none serious, and no concerning kidney, liver, magnesium or potassium changes.
The big test now is whether PYC-003 actually works.
Efficacy data from single-dose studies are expected in the next 1–2 months, while the more important 6-12 month repeat-dose results are expected in 2H 2027 and 1H 2028.
With around 120,000 US Type 1 ADPKD patients, Bell Potter sees a potential US$12bn+ market, while PYC's ~$670m cash balance provides strong funding.
In short, the safety story looks good, but clinical efficacy will determine whether the big potential becomes reality.
Strong upside
If this ASX stock was to reach Bell Potter's target, it would be a further 30% increase from current levels.
The next 12 months are likely pivotal for the biotech company.
PYC is fast approaching a crucial window for this asset with upcoming efficacy data from single-dose studies in the next ~1-2 months and, more importantly, data from repeat-dose studies after 6-12 months of treatment expected in 2H CY27 and 1H CY28. It is these latter readouts which will be highly instructive for demonstrating whether PYC's compelling preclinical data package translates into improved clinical outcomes in patients. The company has a war chest of ~$670m cash as at 30-June-2026 for which it can freely prosecute its clinical development objectives across multiple assets well into the 2030s.
