How did ASX biotech shares perform in FY22?

Biotech certainly wasn't immune to market pressures in FY22.

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Key points
  • ASX biotech shares were a mixed bag in FY22 
  • After a period of heavy losses, the sector strengthened as the financial year completed and momentum is now up
  • It was company-specific updates that made the difference to ASX biotech share performance in FY22

ASX biotech shares were hammered in FY22 with the sector facing heavy losses, in line with the wider technology sector.

The ETFs S&P Biotech ETF (ASX: CURE), an index fund tracking the global biotech sector, is down almost 24% this year to date, and 33% in the last 12 months.

This is despite the ETF climbing from 52-week lows back in June, showing ASX biotech shares strengthening into the new financial year, as illustrated below.

TradingView Chart

Here are three notable biotech shares to emerge from the pack:

A female scientist sits at her desk looking stressed out while working in an AnteoTech lab.

Image source: Getty Images

Telix Pharmaceuticals Ltd (ASX: TLX)

Shares of Telix tracked the biotech sector closely in FY22 and finished around 22% in the red. The company's share price also strengthened in late June and rallied into the new financial year.

This followed a key update from the company. Telix signed a license and distribution agreement with Isologic Innovative Pharmaceuticals Ltd (Isologic).

The agreement is for the commercialisation of Telix's investigational prostate cancer imaging agent, Illuccix.

Isologic is the leading radiopharmaceutical network in Canada, servicing 265 hospitals and clinics
across the country, Telix said.

Momentum has continued into the new financial year with Telix advising yesterday it had dosed the final patient and completed recruitment for its Phase 3 ZIRCON pivotal study.

Mesoblast Ltd (ASX: MSB)

Shares of Mesoblast, on the other hand, didn't have such an enjoyable run in FY22. The share price bounced repeatedly to new lows until finally bottoming at 61 cents on June 30.

The company left investors underwhelmed last financial year and is now down 61% in the past 12 months, and 43% this year to date. Mesoblast shares are valued at 80 cents each at the time of writing.

The company posted its financial and operational highlights for the last quarter on 1 June although the market was agnostic to the report.

In May, a former shareholder began legal proceedings in the Federal Court alleging Mesoblast misled the market on its remestemcel-L label. This added further pressure to the company's share price.

The company has also faced similar allegations in the US.

IDT Australia Ltd (ASX: IDT)

Shares of IDT were heavily compressed in FY22 and finished the year deep in the red. Losses have continued to date with the company's share price finishing around 60% lower last financial year.

One contributing factor was a company update in March. IDT notified the market its submission to the Modern Manufacturing Initiative (MMI) for a Manufacturing Collaboration Stream Grant had been unsuccessful.

But the biggest blow came after IDT was advised that its submission to potentially develop an onshore mRNA manufacturing capability would not progress.

When the company announced its knockback from the federal government back in December 2021, investors ran for the hills.

As a result, IDT shares were heavily punished and plunged 64% from the close on 30 November 2021 to 27 January 2022.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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