Neuren Pharmaceuticals shares gain on Daybue royalties boost
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The news: Shares in Neuren Pharmaceuticals lifted on the ASX as royalties income surged in FY24 on US sales of its Rett syndrome treatment Daybue.
The numbers: Neuren shares were up 2.6% to $16 by 1:35pm AEST.
Neuren reported half-year royalty income of $24.3 million, up from $3.5 million in the previous corresponding period. Daybue saw net sales of USD161 million ($237.5 million) in the US, up from USD23 million a year ago.
Neuren shares slumped earlier this month after its US partner Acadia lowered its Daybue guidance for FY24 to between USD340 million and USD370 million, representing an 11% downgrade at the midpoint of its previous range of USD370 million to USD420 million.
Neuren said that assuming Acadia's new guidance is met, the Melbourne-based group would earn royalties of $55 million to $61 million, compared to the previous estimate of $61 million to $70 million.
Total full-year North America income from Daybue sales is expected to be between $132 million to $138 million, up from $86.2 million in FY23.
The context: Neuren noted that it is progressing approvals for its Rett syndrome drug in Europe and Japan, after Acadia had a new drug submission accepted by Canada's health department in April.
During the period, Neuren also recorded "positive top-line results" from Phase 2 clinical trials of its drug candidate NNZ-2591 in children with Pitt Hopkins syndrome and Phelan-McDermin syndrome.
Earlier this month, the company announced top-line results from another Phase 2 trial of NNZ-2591, which showed "significant improvements" for children with Angelman syndrome.
What they said: "We anticipate full-year revenue from Daybue of $132 million to $138 million and we now have highly encourage results from Phase 2 trials of NNZ-2591 across three syndromes," said Neuren CEO Jon Pilcher.
"With cash and short-term investments of $213 million, Neuren is in the ideal position to optimise the potential of NNZ-2591 in multiple indications," he said.
The source: ASX announcement
