Clarity Pharmaceuticals Ltd (ASX: CU6) shares have been on fire over the last 12 months. During this time the ASX biotech stock has rocketed a massive 280%. To put that into context, a $20,000 investment in the radiopharmaceuticals company a year ago would now be worth $56,000 today. But the good news is that one leading broker believes these gains could continue. What is the broker saying about this ASX biotech stock? Bell Potter highlights that global healthcare giant Astra Zeneca has just acquired one of Clarity’s radiopharmaceuticals rivals. It sees a lot of positives in the deal and notes the significant premium that Astra Zeneca paid. The broker said: Astra Zeneca (AZ) will acquire the NASDAQ listed Fusion Pharmaceuticals for up to US$2.4bn. The largely cash deal represents a 126% premium for Fusion shareholders and yet another validation of radiopharmaceuticals as an emerging cornerstone in oncology. AZ has a well established oncology franchise and the acquisition is a logical extension to its portfolio. The transactions also has clear implications for the implied valuation of CU6. Given the similarities of the two companies, Bell Potter appears to believe that this ASX biotech stock could be of interest to other giants wanting exposure to radiopharmaceuticals. It said: Fusion appears to be at a similar development stage to Clarity in mCRPC i.e. dose determination and in planning for a pivotal study. Both companies have produced encouraging case study data arising from patients involved in earlier clinical trials. We concluded that the level of interest among pharma groups looking for radiopharmaceutical assets remains at fever pitch. This acquisition by AZ is the third transaction in recent months involving a top tier pharma in the category. High quality, later stage assets are likely to continue to attract premium prices. More returns to come In response to the news, Bell Potter has reiterated its speculative buy rating and $3.90 price target on the ASX biotech stock. This implies potential upside of 32% for investors over the next 12 months. So, while it may have almost quadrupled in value since this time last year, clearly Bell Potter doesn’t believe it is too late to invest (if you have a high risk tolerance).
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