Skip to Content
scroll

Clarity Pharmaceuticals (CU6)

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

The Latest Q&A

Question asked

Clarity Pharmaceuticals (CU6)

Clarity Pharma (CU6) has kicked up in the last month or two and I bought a small parcel which has done well. Broker consensus was positive at the time but where to from here? Do we take the money and run? Let it ride? What would you do? and do you think long term it could become a 10 bagger so to speak thanks for the service, a must read each day are your comments for me.

Answer

Hi Peter,

Clarity Pharma (CU6) is a volatile beast; it was up around 10% when we were answering this question on Thursday, although it’s still down marginally year-to-date, and 50% below its 12-month high. The stock’s recent strength has come following a broker note suggesting the market for its SAR-bisPSMA imaging agent is larger than investors initially thought – Canaccord raised their forecast for sales from the next three to five years to $US730 million, from $US520 million previously.

However, not everyone is so keen on CU6 with the stock attracting the biggest percentage increase in total bearish bets for the week ending 7th of July. Hence, at this stage of its evolution we regard CU6 as trading/aggressive investment vehicle with the $1.4bn business still losing money – at the end of the March quarter they had total available cash of ~$106mn providing runway into the second half of 2026.

  • From a trading perspective we like CU6 while it holds above $3 although with resistance coming in ~$4.50 we can see some consolidation in the coming weeks.

If we had to put a label on CU6 at $4.30 it would be neutral.

chart
image description
Clarity Pharmaceuticals (CU6)
Back to top