The drug with the 'potential to become a blockbuster' for this ASX 200 healthcare company: Citi

What's ahead for this biotechnology giant?

| More on:
Two researchers discussing results of a study with each other.

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

Key points

  • This ASX 200 healthcare company has a potential 'blockbuster' among its product pipeline
  • The treatment is at a phase three trial stage currently 
  • The shares in this company have fallen 6% in the past year 

ASX 200 healthcare company CSL Limited (ASX: CSL) has a drug candidate in its pipeline that could be a 'blockbuster' in the future, Citi analysts believe.

The CSL share price climbed 1.47% today and closed at $290.75. For perspective, the S&P/ASX 200 Index (ASX: XJO) fell 0.07% today.

Let's take a look at what could be ahead for this ASX 200 healthcare company.

What's ahead

CSL is an ASX biotech giant that develops a huge range of biotherapies and vaccines to save and improve lives.

CSL's drug candidate for reducing secondary heart attacks is a major positive for the company, according to analysts.

Commenting on CSL112, a drug currently at the phase three clinical trial stage, Citi analysts, quoted by The Age, said:

If approved, CSL112 has the potential to become blockbuster drug for CSL.

In an update in November, CSL said recruitment for this trial is on track for "Last Patient In" (LPI) by the end of the year.

Launch of CS112 is on track for the fourth quarter of 2025, according to CSL.

As my Foolish colleague James reported recently, Citi has a buy rating and a $340 price target on the CSL share price. Analysts said:

Our $340 TP includes $22.40 for the R&D portfolio (down from $23 on delays) – the main asset remains CSL112 (cardiovascular) at $20/share on which we will get Phase 3 data in Q1 CY24. Maintain Buy, $340 TP.

Meanwhile, Morgans is also impressed with Citi's research and development pipeline, including CSL112. Morgans placed an add rating and $312.20 price target on the company's share price.

CSL share price snapshot

The CSL share price has fallen 6% in the past year, while it has climbed 0.1% in the year to date.

For perspective, the ASX 200 has fallen 4.40% in the past year.

CSL has a market capitalisation of about $140.2 billion based on the current share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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 Scott Phillips.

More on Healthcare Shares

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

What are Cochlear shares worth according to Macquarie?

Let's see what the broker is saying about this blue chip.

Read more »

Shot of a mature scientists working on a laptop in a lab.
Healthcare Shares

When will CSL shares finally catch a break?

Here's where analysts think the biotech stock is heading next.

Read more »

An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement today
Healthcare Shares

JP Morgan initiates coverage of Telix Pharmaceuticals. After rising 1,667% in 5 years, is it still a buy?

Can this ASX 200 juggernaut go higher?

Read more »

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

Why this top broker expects CSL shares to surge 26%

A leading broker foresees a big rebound ahead for CSL shares. But why?

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Healthcare Shares

Guess which ASX All Ords stock is jumping on big US news

This small cap is catching the eye on Thursday. But why?

Read more »

three excited doctors with hands in the air
Healthcare Shares

Two ASX healthcare shares that could be set to double

This broker has buy recommendations on these two shares. 

Read more »

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

Telix shares jump 7% on big US news

Let's see what is getting investors excited on Wednesday.

Read more »

An older gentleman leans over his partner's shoulder as she looks at a tablet device while seated at a table.
Healthcare Shares

Macquarie tips 28% upside for this ASX healthcare stock

The broker expects big things from this New Zealand retirement village developer and operator.

Read more »