If you're the type of investor who likes high-risk reward investments, then read on.

That's because a leading broker is tipping an ASX biotech stock to almost double in value over the next 12 months.

The company in question is Imugene Ltd (ASX: IMU).

It is a clinical-stage immuno-oncology company developing a range of new and novel immunotherapies that seek to activate the immune system of cancer patients to treat and eradicate tumours.

It claims to have unique platform technologies that seek to harness the body's immune system against tumours, potentially achieving a similar or greater effect than synthetically manufactured monoclonal antibody and other immunotherapies.

The key product in its pipeline is the off-the-shelf cell therapy CAR T drug azer-cel (azercabtagene zapreleucel), which targets CD19 to treat blood cancers.

According to a note out of Bell Potter, its analysts were pleased with the company's strategic manufacturing and process development partnership announcement this month with Kincell Bio.

Not only does this bring cash in from the sale of its North Carolina manufacturing facility, but it also reduces its expenses materially. Management expects to realise US$32 million in staff cost reductions, manufacturing efficiencies, and overhead savings over the next three years because of the deal.

Bell Potter commented:

The deal allows Imugene to re-focus on its core competency of research and development for new oncology drugs, rather than the operation of complex production facilities. Kincell is a well established contract manufacturing business in biologics and is ideally suited to the manufacturing operations which Imugene inherited with the Azer-cel acquisition of September 2023.

In light of this and with the company's progress with three core asset programs, it feels that Imugene is reaching an inflection point. It adds:

The company remains well funded with cash at 31 December of $139m. The Development Partnership with Kincell will free up crucial management time and resources to concentrate on the clinical programs each of which are moving toward value inflexion points.

In response to the above, this morning the broker has reiterated its speculative buy rating and 15 cents price target on the ASX biotech stock.

Based on its current share price of 8.4 cents, this implies a potential upside of approximately 79% for investors over the next 12 months. To put that into context, a $5,000 investment would be worth almost $9,000 if Bell Potter's recommendation proves accurate.

But as I mentioned above, this is a high-risk investment. Bell Potter classes its speculative buy ratings as "investments [that] may carry an exceptionally high level of capital risk and volatility of returns."