The Neuren Pharmaceuticals (ASX:NEU) share price has soared 102% so far this month. Here’s why

The ASX biopharmaceutical company is having a stellar month.
The post The Neuren Pharmaceuticals (ASX:NEU) share price has soared 102% so far this month. Here’s why appeared first on The Motley Fool Australia. –

The Neuren Pharmaceuticals Ltd (ASX: NEU) share price has more than doubled in less than a month.

The biopharmaceutical company’s share price has gained 102%, shooting from $1.80 at the end of last month to $3.64 at the time of writing. Even with the company’s share price down almost 6% today, it’s an impressive gain.

Let’s delve into what might be driving investor confidence in the company in December.

A merry December

Investors seem to be reacting to promising phase three clinical trial results on a new drug.

The massive surge in the company’s share price started on December 7 when the company announced promising top-line results from a drug trial undertaken in the US.

Neuren reported it is making significant progress on the use of its lead compound trofinetide to treat young women with Rett Syndrome.

Rett Syndrome is a neurological disorder caused by mutations on the X chromosome on a gene called MECP2. It is often misdiagnosed as autism and is identified in one of every 10,000 to 15,000 female births in the US.

The company’s partner Acadia Pharmaceuticals (NASDAQ: ACAD) is conducting and funding the trials and plans to meet with the US Food and Drug Administration to progress a new drug application in 2022.

Neuren told investors it could earn AU$111 million in revenue over 2022 and 2023 for its Rett syndrome treatment. In the US alone, the company sees sales potential of US$500 million.

Further, the company is eligible for double-digit percentage royalties on net sales if trofinetide is approved and launched in the US.

This was the only significant price-sensitive news the company released to the market during December.

However, Neuren is also working on phase two trials of the drug candidate NNZ-2591. This drug has the potential to treat multiple neurodevelopmental disorders. In fact, the company sees the the target market for this drug candidate to be five times the Rett Syndrome opportunity.

For perspective, the S&P/ASX 200 Health Care (ASX :XHJ) sector is down 2.76% since the start of the month.

Neuren Pharmaceuticals share price recap

The Neuren Pharmaceuticals share price has surged 181% in the past 12 months and up 178% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned more than 11% over the past year.

In the past week, the company’s shares have shed just over 6%.

The company has a market capitalisation of about $450 million based on its current share price.

The post The Neuren Pharmaceuticals (ASX:NEU) share price has soared 102% so far this month. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in Neuren Pharmaceuticals right now?

Before you consider Neuren Pharmaceuticals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Neuren Pharmaceuticals wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

3 ASX shares giving the gift of gains heading into Christmas

Neuren Pharmaceuticals (ASX:NEU) share price rockets 100% on study results

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!