Stocking stuffers: Morgans’ top ASX health picks for 2025

Morgans healthcare and life sciences experts Iain Wilkie and Scott Power give Stockhead readers their top picks for 2025.

Pic via Getty Images

• Morgans sees opportunities among several ASX healthcare stocks in 2025

• Broker looking at stocks with near-term catalysts or sold down with good entry opportunities

• Morgans' Christmas stocking has mix of up-and-comers alongside mature names

Morgans healthcare and life sciences experts Iain Wilkie and Scott Power give Stockhead readers their top picks for 2025.

Despite recent volatility in the broader healthcare market following a potential shakeup with the US FDA after Donald Trump's re-election as US president, Scott Power and Iain Wilkie see significant opportunities in 2025 across the ASX healthcare sector.

The analysts are particularly watching several stocks with near-term catalysts, or late-stage/commercial companies which have been aggressively sold down and present potential advantageous entries.

“Our tilt remains toward later stage companies with prior efficacy signals and short time horizons to meaningful catalysts,” Wilkie said.

He said investment in biotech calls for a balance of moderate assets, while still retaining exposure to higher potential return stocks with one approach to construct a basket – or at this time of year Christmas stocking – with a mix of up-and-comers alongside more mature assets.

One such possible stocking option below includes stocks that balances risk and reward including some covered by Morgans, along with some that are well supported by consensus but not covered by the broker.

The moonshot: 0-15% of basket

Neurizon Therapeutics (ASX:NUZ)

Neurizon (formerly PharmAust) has an adaptive phase 2/3 trial launch of its lead drug candidate NUZ-001 to treat amyotrophic lateral sclerosis (ALS) expected Q1/Q2 CY25.

“Expect around six months for recruitment plus six months for the phase II readout, which will follow on into phase III, taking up to six months,” Wilkie said.

He said it would be a condensed clinical program with high news flow.

The company has submitted an IND application to the US Food and Drug Administration (FDA) for its adaptive phase 2/3 trial in ALS.

"We await this approval to get more confidence on patient numbers, endpoints, trial start dates and costs,"  Wilkie said.

"This means we are happy to start with a small position now and add as it progresses."

Neurizon is rated by Morgans as a speculative buy with a 12-month target price of 42 cents.

On the cusp: 20-35% of basket

Dimerix (ASX:DXB)

The clinical-stage biotech is forecasting the second interim analysis of its ACTION3 global Phase 3 trial of lead drug DMX-200, to treat focal segmental glomerulosclerosis (FSGS) in around mid-CY25.

The phase III study is titled Angiotensin II Type 1 Receptor (AT1R) & Chemokine Receptor 2 (CCR2) Targets for Inflammatory Nephrosis – or the far-more catchy ACTION3 for short.

"Dimerix has commercial and clinical validation following two licensing deals signed and insights into efficacy following successful interim analysis," Wilkie said.

"There’s an opportunity for rally in the lead up to results alongside further partnership opportunities in larger jurisdictions, such as the US."

Dimerix is not rated by Morgans.

Clarity Pharmaceuticals (ASX:CU6)

Radiopharmaceutical has emerged as one of the hottest spaces in biotech and front and centre is Clarity.

Wilkie said a solid stream of positive clinical results continued to derisk Clarity assets with potential catalyst events in 2025.

"CU6 is known for its diagnostic capabilities, but the ultimate blue-sky asset is therapeutic application which has shown strong signals in early studies," he said.

Clarity is not rated by Morgans.

Opthea (ASX:OPT)

The retinal-diseases-focused biotech is awaiting two phase III trial results in CY25.

The company’s Coast phase III results investigating sozinibercept (OPT-302), a vascular endothelial growth factor (VEGF)-C/D inhibitor, in combination with aflibercept for the treatment of wet age-related macular degeneration (wet-AMD) are due early in Q2 CY25.

Results for its phase III ShORe trial investigating OPT-302 in combination with Ranibizumab in wet AMD are due in mid CY25.

Opthea is not rated by Morgans.

Clinically validated/on market assets: 50-65% of basket

EBR Systems (ASX:EBR)

EBR is anticipating FDA marketing approval in Q1 CY25 for its Wise CRT (cardiac resynchronisation therapy) system, which will be a major catalyst for the company.

Wise holds the distinction of being the world’s first leadless pacemaker for the heart’s left ventricle.

The company has submitted the final module of its premarket approval (PMA) for Wise with a substantive review underway.

"Given strong clinical results and modular submission approach, we see a relatively low likelihood of significant delays, or the approval being denied," Wilkie said.

"Happy to buy now in the lead up to approval, likely due around February."

Morgans has a speculative buy and 12-month trading price of $1.76 on EBR.

Avita Medical (ASX:AVH)

The dual Nasdaq-listed wound care company is anticipating two FDA approvals in December, including Recell mini.

The Recell system is FDA-approved for burns, skin defects, and vitiligo repigmentation, using spray-on skin cells from the patient's own skin. Recell Go Mini treats smaller wounds.

Avita is also anticipating FDA 510(k) clearance of Cohealyx, a collagen-based dermal matrix used to treat different types of wounds more effectively, before year-end with a forecasted launch in January 2025.

Wilkie said Q4 CY24 guidance looks achievable, and approvals are expected to be well received if achieved.

"We’re happy buying anywhere around these current prices, and harder on market weakness sub $4," he said.

Morgans has a buy rating and 12-month trading price of $4.56 on EBR.

Neuren Pharmaceuticals (ASX:NEU)

Wilkie said shares in Neuren have been weak of late, although noting the technical support of a $50m share buy-back starting on December 2.

Wilkie said key catalysts include an update on quarterly sales of Daybue (trofinetide) for treatment of childhood neurological disorder Rett Syndrome from US partner Arcadia and progression of NNZ-2591 into a phase III trial to treat Phelan McDermid Syndrome (PMD).

Neuren is not rated by Morgans.

Imricor Medical Systems (ASX:IMR)

Power said Imricor, which was the only company in the world that provides MRI-compatible consumable devices, such as single-use ablation catheters, required to perform cardiac ablations in an iCMR lab, has several near-term catalysts.

"The start of its European trial for ventricular tachycardia (VT) and completion recruitment for US trial for atrial flutter are key near-term catalysts," Power said.

"Interest in the name is growing and larger medical device companies are seeing growth in the electrophysiology parts of their business."

Morgans has a speculative buy rating on IMR with a 12-month target price of $1.51.

The views, information, or opinions expressed in the interview in this article are solely those of the interviewee and do not represent the views of Stockhead. Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.

At Stockhead, we tell it like it is. While Dimerix, EBR Systems and Imricor Medical Systems are Stockhead advertisers, the companies did not sponsor this article.

Originally published as Stocking stuffers: Morgans’ top ASX health picks for 2025