Company Interview / Biotech risk reward tilts up despite turmoil | the trade

Key points:

Iran conflict and weaker PMIs in eurozone and US seen as pressuring global growth Tacadena outlines bullish stance on smaller ASX biotech names Amplia Therapeutics (ASX:ATX) and Telix Pharmaceuticals (ASX:TLX) highlighted for asymmetric upside Clarity Pharmaceuticals (ASX:CU6) and 4DMedical (ASX:4DX) seen as longer‑term growth plays

Global biotech volatility, Middle East tensions and weakening business surveys in the eurozone and US frame a complex backdrop for investors, according to The Trade. The Iran conflict is seen as weighing on global growth, with the latest S&P Global purchasing managers’ indices for both Europe and the United States sliding towards multi‑month lows as firms report supply delays and rising costs.

Jonathan Tacadena from MPC Markets focuses on ASX-listed biotechs, arguing they offer compelling risk‑reward despite the turmoil. Taggart singles out Amplia Therapeutics (ASX:ATX), highlighting recent independent trial results in pancreatic cancer and a capital raising at 23 cents as reasons to view the current 21 cent level as a potential base, with a market capitalisation he regards as modest versus global peers. He also points to Telix Pharmaceuticals (ASX:TLX), noting its strong share price recovery, rising short interest near 15% and late‑stage FDA process as ingredients for a possible short squeeze.

Clarity Pharmaceuticals (ASX:CU6) and 4DMedical (ASX:4DX) round out Tacadena’s watchlist. He notes Clarity’s new US supply agreement and sees sector sentiment turning as beaten‑down names like CSL (ASX:CSL) stabilise. For 4DMedical, Taggart views the Mayo Clinic deployment as powerful validation, arguing that with only a handful of US hospital installations, global growth runway remains substantial.