Neuren Pharma shares lift on new drug development

The news: Neuren Pharmaceuticals has announced it will develop a new drug to treat a type of life-threatening brain injury in infants, sending its shares higher.

The numbers: The company said it had initiated the development of the NNZ-2591 drug, intended to treat hypoxic-ischemic encephalopathy (HIE), and said it is targeting a pre-investigational new drug meeting with the US Food and Drug Administration in the fourth quarter before initiating a clinical trial.

Neuren shares rose 2.7% to $2.25 in early trading on the ASX.

The context: Neuren said it anticipates NNZ-2591 in HIE will qualify for Orphan Drug and Rare Pediatric disease designations from the US FDA. “Neuren is now targeting a potential new paradigm in treatment to improve long-term outcomes for children and their families,” Chief Science Officer Larry Glass said.

HIE occurs when an infant’s brain does not receive enough oxygen or blood flow before or shortly after birth, and is a leading cause of neonatal death and neurodevelopmental disability worldwide.