Why the Clinuvel Pharmaceuticals Limited (ASX:CUV) share price is rocketing today

After its latest update, Clinuvel Pharmaceuticals Limited (ASX:CUV) holds promise for growth.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in Clinuvel Pharmaceuticals Limited (ASX: CUV) surged 14% to $12.15 on Monday, as the company advanced its plans to launch its flagship product in the USA.

Clinuvel is a small-cap biopharmaceutical company, specialised in skin disorders. Its main product is Scenesse, a photoprotective drug used to treat a rare condition known as EPP.

The medicine has already received marketing authorisation in the EU. Today, Clinuvel announced an application to the United States Food and Drug Administration (FDA) for the use of Scenesse as the first proposed therapy for patients with EPP in the USA. The FDA may provide a response as soon as early 2019.

In the first half of FY18, Clinuvel had revenue of just $7 million, enough to generate positive cash flows and NPAT of $1.4 million. The stock trades at a sky-high P/E ratio of 100.

Receiving marketing authorisation in the USA would significantly boost Clinuvel's revenue base, but the real game changer for the company would be the adoption of Scenesse in the treatment of other skin disorders. The medicine is being tested for vitiligo, a rather common condition causing depigmented patches of skin.

But there are also other innovative companies poised to outperform competitors in 2018. Click here to find out about these new opportunities.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »