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Highlights
- Neuren Pharmaceuticals is an ASX-listed company, engaged in developing new drug therapies for neurological disorders
- In FY23, NEU achieved AUD 157 million in after-tax profit
- Milford Asset Management Ltd. has the maximum stake in the company with shareholding of nearly 5.13%
Neuren Pharmaceuticals Limited (ASX:NEU) develops new drug therapies for neurological disorders. The company has achieved significant milestones, including the approval of its product DAYBUE™ (trofinetide) by the US FDA for the treatment of Rett syndrome in both adult and pediatric patients aged two years and older. Additionally, Neuren is advancing its drug candidate NNZ-2591, which is currently undergoing Phase 2 clinical trials.
In the financial year 2023 (FY23), licensing revenue increased by 1488% year-over-year (YoY) to AUD 231.9 million. Total income surged by 1311.8% YoY to AUD 240 million, and cash and short-term investments grew by 468.4% YoY to AUD 228.5 million. During the reported period, Neuren reported an after-tax profit of AUD 157 million.
The period also saw an expansion of Neuren's partnership with Acadia to include regions outside North America, securing AUD 146 million upfront payment along with future royalties.
Top 10 Shareholders of NEU
The top 10 shareholders of NEU hold around 22.81% of the shareholding, while the top four hold nearly 13.12%. Milford Asset Management Ltd. and Cameron Richard Pty. Ltd. have maximum stake in the company, with shareholdings of approximately 5.13% and 3.23%, respectively.
Recent Business Update
In an ASX update dated May 9, 2024, the company shared an update from Acadia’s Q1 FY24 earnings call. Acadia reported DAYBUE™ net sales of USD 75.9 million, slightly below the forecasted range. For FY24, Acadia reaffirmed sales guidance of USD 370-420 million. In Q1 FY24, Neuren expects to report AUD 11.6 million in royalties, while for FY24, royalties of AUD 61-70 million are expected.
According to the Q1 FY24 update shared on April 24, 2024, Neuren delivered net cash from operating activities of AUD 8.0 million, backed by royalties of AUD 13.4 million received in Q4 FY23. At the end of March, cash and short-term investments stood at AUD 243.1 million.
Outlook
In FY24, Neuren forecasts royalties of AUD 61-70 million and expects to achieve AUD 77 million in sales milestone revenue, on the back of estimated net sales of Acadia of USD 370-420 million.
Favourable economic outcomes are expected from product launches and sales across crucial regions, aligning with its expanded partnership agreement with Acadia.
Share Performance of NEU
NEU shares closed 1.03% lower at AUD 19.30 apiece on July 10, 2024. Over the past year, NEU's shares increased by a whopping 70.19%, though they have dropped by almost 7.83% in the last three months.
The 52-week high of NEU is AUD 25.95, recorded on December 28, 2023, and the 52-week low is AUD 10.02, recorded on October 30, 2023.
NEU Daily Technical Chart, Source: EODHD/Others
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 10 July 2024. The reference data in this report has been partly sourced from EODHD/Others.
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