Neuren Pharmaceuticals Sees ASX200 Momentum as Market Eyes EMA Approval

June 18, 2025 01:09 PM AEST | By Team Kalkine Media

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Neuren Pharmaceuticals Sees ASX200 Momentum as Market Eyes EMA Approval — Image source: shutterstock

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Highlights

Neuren Pharmaceuticals shares gain amid strategic momentum

Royalty-rich partnership with Acadia drives earnings leverage

EMA approval eyed, boosting potential future revenue

Neuren Pharmaceuticals (ASX:NEU), a biopharmaceutical company known for its focus on rare neurological conditions, saw a positive movement in its share price during morning trade, gaining 2.8% to reach $13.21. The uplift in sentiment follows fresh coverage suggesting strong prospects ahead, including a target price of $18.60.

This uptick places Neuren among notable ASX200 stocks, where investor attention is increasingly aligning with companies showcasing robust growth catalysts and strong commercial partnerships.

Strategic Partnership Strengthens Revenue Profile

A key element behind the renewed confidence in Neuren’s trajectory lies in its strategic collaboration with Acadia Pharmaceuticals. The partnership centres around Daybue, a treatment for Rett syndrome, a rare neurodevelopmental disorder. Under the arrangement, Acadia shoulders all commercialisation costs, while Neuren receives 10–15% in royalty payments along with milestone-related earnings.

This model has positioned Neuren to benefit from significant revenue inflows without proportionate operational expenses—a compelling structure in the biopharmaceutical sector.

Global Expansion Set to Catalyse Further Gains

Market participants are also closely watching the potential geographic expansion of Daybue. Acadia anticipates that the European Medicines Agency (EMA) will grant approval for the treatment early next year. If approved, this will unlock another wave of milestone payments and royalties for Neuren, strengthening its financial standing further.

The expansion of Daybue into international markets is not only expected to deepen Neuren’s revenue base but also support its positioning among leading biotechnology players listed on the ASX200.

Unique Risk-Reward Dynamics in Play

What makes Neuren's outlook particularly notable is its asymmetric risk-reward profile. The company's minimal cost exposure, high-margin royalty structure, and late-stage pipeline prospects present a rare combination. Such characteristics resonate strongly in today’s market environment, where investors are keen on scalable biotech models with mitigated operational risks.

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