ASX health technology company Blinklab Ltd (ASX: BB1) is entering an interesting phase, broker Morgans believes, with several share price catalysts soon to emerge.
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New technology opening up a large market
Blinklab produces smartphone software to diagnose conditions such as autism and ADHD. Morgans noted that readouts from four exploratory programs are soon to be published.
Blinklab has almost fully recruited participants for a pivotal study for autism, with Morgans saying this should be completed by the end of the year, with submission to the US Food and Drug Administration expected in the first quarter of calendar 2027.
Morgans added:
BB1's technology has broad applications across additional indications (adult autism, dementia detection, ketamine-based pharma intervention) and preliminary data is expected to read out over the next 12 months adding to the cadence of news flow. Recently, BB1's European ADHD study delivered positive results. A US pilot is due to start in 2QCY27, ahead of a pivotal study mirroring the autism path. We agree with management that this presents a significantly larger commercial opportunity than autism spectrum disorder.
The company also recently announced a major appointment, with Dr Raphael Bernier joining the board.
Dr Bernier was the former clinical lead for mental health at Apple Health. The company said he brought first-hand experience translating clinical science into digital products at a global scale.
Blinklab said at the time:
Dr Bernier brings a rare combination of clinical practice, internationally recognised research leadership and commercial product-development experience. His appointment is intended to deepen the Board's expertise as BlinkLab progresses its pivotal U.S. FDA 510(k) program for BlinkLab Dx1 and prepares for clinical adoption and commercialisation in the United States, subject to regulatory clearance. Dr Bernier recently retired from Apple Health, where he led the clinical development of the Mental Wellbeing app for iPhone, iPad and Apple Watch. He also conducted early-stage research across released and unreleased products in the Apple ecosystem and supported the rollout of additional products relating to child development and cognitive accessibility.
Morgans said there were significant market opportunities in the diagnosis of autism and ADHD, and Blinklab also had the opportunity to expand into other conditions.
Shares looking cheap
The broker has a 12-month price target of $1.76 on Blinklab shares compared to 66 cents currently.
If achieved, this would be a 166% return. The shares are well down from their 12-month high of $1.10.
Blinklab is valued at $114.6 million.
