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Highlights

  • Neuren Pharmaceuticals is an ASX-listed biopharmaceutical company with a focus on neurological conditions
  • In FY23, the company recorded 78450% rise in its profit after tax to AUD 157.1 million
  • Milford Asset Management Ltd holds the highest stake in NEU with a shareholding of around 5.14%

Neuren Pharmaceuticals Limited (ASX: NEU) focuses on creating novel drug treatments for neurological disorders. In the financial year 2023 ended 31 December 2023 (FY23), licensing revenue of NEU increased by 1488% to AUD 231.9 million, while profit after tax jumped 78450% to AUD 157.1 million.

The reported period saw AUD 27 million in royalties and AUD 205 million in milestone and up-front payments. Moreover, the firm received exciting top-line results in Phase 2 trial for Phelan-McDermid syndrome.

Top 10 shareholders of NEU

The top 10 shareholders of NEU have around 22.73% shareholding in the company, while the top four have 13.11% shareholding. Milford Asset Management Ltd and Cameron Richard Pty Ltd have the highest stake in the firm with a shareholding of nearly 5.14% and 3.23%, respectively.

Recent business update

Through an ASX-update dated 26 April 2024, the company notified that its annual general meeting would be held on 28 May 2024.

On 24 April 2024, the company released its first quarterly report for FY24 (1QFY24) and recorded a net cash of AUD 8.0 million from operating activities, backed by royalties of AUD 13.4 million from 4QFY24.

Additionally, the period saw launch of DAYBUETM in the US for Rett syndrome, resulting in royalties of AUD 27 million from the former net sales of USD 177.2 million in 2023.

Outlook

In FY24, the company expects to receive royalties of AUD 61 – 70 million and milestone revenue of AUD 77 million. The expectations are based on the anticipation of Acadia Pharmaceutical, a partner of NEU, to deliver net sales of USD 370-420 million in FY24.

In the first quarter, royalties are expected to fall in the range of AUD11.7-12.6 million with Acadia expecting net sales of USD 76-82 million.

The company is progressing with the development of NNZ-2591 for four serious neurodevelopmental disorders.

Share performance of NEU

NEU shares closed 0.73% lower at AUD 19.06 apiece on 1 May 2024. In the past 12 months, NEU’s share price has surged by 34.14%, while in the last three months it has declined by 19.31%.

The 52-week high of NEU is AUD 25.95, recorded on 28 December 2023, and the 52-week low is AUD 10.02, recorded on 30 October 2023.

NEU Daily Technical Chart, Source: REFINITIV

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 1 May 2024. The reference data in this report has been partly sourced from REFINITIV.