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.