New call-to-action


See all



Why Are Investors Excited About Biotron?

Stuart Lucy

Stuart Lucy is an Investment Specialist at the Australian Stock Report, and has gained exposure to funds management and investment banking throughout his career. He draws on this experience to provide macroeconomic commentary and actionable investment insights to clients. Stuart is responsible for writing reports, is involved in delivering Macrovue webinars and provides general advice to our members on portfolio construction. Stuart currently holds RG146 General and Securities qualifications.

Biotron (ASX: BIT) operates within the healthcare space and is in the process of developing its signature BIT225 compound for the treatment of both HIV-1 and Hepatitis C. HIV is the virus that causes AIDS if untreated, so you can appreciate the huge market opportunity the company can take advantage of if the technology is successful. The product is designed to prevent replication of the HIV-1 virus, which stops the virus progressing. In combination with other anti-retroviral compounds, it offers the potential to completely eradicate AIDS. This is much more attractive to HIV sufferers than existing treatments which only keep the virus at bay and prevent it from mutating into AIDS.

Biotron report
Biotron has a product to treat HIV that is rapidly being commercialised, opening up a huge market opportunity for the $43.5m ASX biotech company (Credit: Biotron Limited)

The company is up 300% over the past year, after the company successfully passed phase 1 clinical trials. Pharmaceutical companies must pass phase I, phase II and phase III trials before successfully commercialising a drug, proving its effectiveness and getting regulatory approval to sell it. Passing phase I trials drastically increases the chance that the technology is able to be commercialised and caused the share price to rally. The stock rallied over a thousand percent on the news, but subsequently declined as investor euphoria waned after the announcement.

The company has five patents and a number of scientific publications on their research. The company is pre-revenue, which means that the ultimate success of an investment is heavily dependent on the interim share price performance. This is because the business needs to continually raise capital to keep developing their products, so share price weakness will result in more shares being sold to achieve the same level of progress, diluting the investments of existing investors.




This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

New call-to-action