2 ASX healthcare shares set to explode 70% in 2022: expert

Biotech and health stocks can fluctuate wildly, but when things go right they can be very rewarding for investors. Here's a pair picked by an analyst

| More on:
Man in whit coat after explosion.

Image source: Getty Images

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

With COVID-19 Omicron surging around the globe, ASX healthcare shares are back in the spotlight.

While most don't deal with the pandemic directly, there are many health and biotechnology companies on the ASX that are plugging away quietly trying to come up with solutions to save lives or improve the quality of them.

Wilsons senior analyst Dr Shane Storey, who is a specialist in health stocks, recently picked out some ASX healthcare shares that he reckons have excellent upside.

Here are 2 with the biggest potential:

The ASX healthcare share that could rocket 86% in the new year

Immutep Ltd (ASX: IMM) is a company developing cancer immunotherapy solutions.

Its shares, like many of its biotech peers, have been wildly up and down this year.

But as of Thursday morning, they were going for 49 cents, while Wilsons has set a price target of 91 cents per share.

That's a massive 86% upside.

Immutep's technology uses what's called the LAG3 immune control mechanism for one of its solutions.

"Immuno-oncology has dramatically changed how we treat cancer and the survival outlook for patients with late-stage and metastatic disease," Storey posted on Livewire.

"LAG3 is the most advanced novel immune checkpoint target, which could see its first targeted drug approval in 1Q '22."

Kiwi business ready to stamp into the US market

New Zealand ASX healthcare share Aroa Biosurgery Ltd (ASX: ARX) deals in the area of soft tissue regeneration.

Wilsons has a price target of $1.75 for each of its shares. This is a 72% upside compared to the Thursday morning price of $1.02.

Myriad is Aroa's flagship product that can be used for soft tissue reconstruction in cases like carcinoma tumor excision, traumatic wound, and fistula.

A team of more than 20 sales staff has now been formed to market the solution in the US, according to Storey.

"The growth expected from the Myriad franchise is supported by the newly added Morcells product approved in April 2021, to complement the Myriad Matrix sheet product," he said. 

"We have already seen excellent traction with Morcells and expect it to continue to contribute positively to Aroa's gross margin given it is a product manufactured from the 'scrap' or waste matrix sheeting."

He added that the products offered by Aroa are currently rare in the inpatient wound market, and this gives them a great chance for adoption.

Aroa also has a skin substitute product named Symphony, due to be launched in the first quarter of the new year.

"We anticipate Aroa can offer Symphony at a 40% to 50% discount to existing biologic skin substitutes, which typically retail at US$6,000 to US$10,000 per device."

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Healthcare Shares

Broker says this ASX 200 biotech stock is a top buy

Let's see what Bell Potter is saying about this biotech.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why CSL shares are a buy today despite the looming Trump tariffs

A leading expert believes CSL shares are still trading for a bargain today. Here's why.

Read more »

A businesswoman pulls her glasses down in shock to look at the bad news on her computer.
Healthcare Shares

Why did the Telix share price just crash 16%?

Investors are sending the Telix share price plunging today. But why?

Read more »

Broker analysing the share price.
Healthcare Shares

Expert: 2 ASX healthcare stocks to avoid before reporting season

Not all healthcare stocks are created equal.

Read more »

A group of people in a corporate setting do a collective high five.
Healthcare Shares

Should I buy Pro Medicus or CSL shares ahead of earnings season?

The ASX healthcare sector may be currently undervalued.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Healthcare Shares

Why Mesoblast shares can keep storming higher

More big returns could be on the way for buyers of this high risk stock according to Bell Potter.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »

couple having a happy discussion with a banker
Healthcare Shares

Expert: 4 ASX healthcare stocks to buy ahead of reporting season

Could these ASX healthcare stocks be good additions to your portfolio?

Read more »