Neuren shares surge as investors wait on FDA updates
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The news: Neuren Pharmaceuticals was the second best performing stock across the ASX 200 during afternoon trade despite no news.
The numbers: Neuren shares surged 8.71% to $14.72 by 1:40pm AEST but has plunged 40.69% since the start of 2024.
The context: Petra Capital analyst Tanushree Jain told Capital Brief that there were a number of developments in the near term which would potentially be stock price catalysts driving the stock as its price had fallen to “way too cheap levels”.
Jain said the developments included an update on the company’s meeting with the US Food and Drug Administration (FDA) on a phase 3 drug trial design for Phelan-McDermid syndrome.
The analyst said they were also waiting on whether the FDA’s priority review voucher (PRV) program would be reauthorised before expiring at the end of the month.
Under the law, the FDA will not be allowed to award any rare paediatric disease PRVs after 30 September, 2024/
What they said: “If the PRV program does not get re-authorised then the value of PRV’s will go up and Neuren will benefit as they get one-third share of proceeds when their partner Acadia sells the PRV voucher it got on [its] Daybue approval”.
The source: Petra Capital
