Neuren Pharmaceuticals Limited (ASX: NEU) has announced a significant development for its shareholders: the initiation of an on-market share buy-back program of up to A$50 million. This strategic move aligns with the company’s confidence in its financial position, supported by recent revenue milestones.
Boost from DAYBUE™ Sales and Priority Review Voucher Proceeds
The decision to undertake this buy-back follows Acadia Pharmaceuticals’ successful sale of its Rare Pediatric Disease Priority Review Voucher for US$150 million, of which Neuren is entitled to one-third. Acadia also reported record-breaking net sales of DAYBUE™ (trofinetide), generating US$91 million in Q3 2024. These results underline the strong and sustainable cash flow that Neuren receives from DAYBUE™, providing the company with flexibility to invest in its future and return value to shareholders.
Strategic Deployment of Capital
Neuren’s board has decided to deploy up to A$50 million to repurchase shares, reflecting the company’s current strong cash position and confidence in its share price. The buy-back will run for up to 12 months, during which the company will closely monitor market conditions, operational performance, and investment opportunities. Neuren retains the flexibility to adjust, pause, or terminate the program as needed.
Key Details of the Share Buy-Back
The buy-back will adhere to strict regulatory guidelines, including the New Zealand Companies Act 1993 and the Australian Corporations Act. The total shares repurchased will not exceed 5% of those on issue 12 months prior to the buy-back’s commencement and will remain within the "10/12" limit set by Australian law. Based on Neuren’s closing share price on 13 November 2024, up to 3,022,974 ordinary shares (approximately 2.4% of total shares on issue) may be acquired and subsequently cancelled.
The buy-back will avoid designated blackout periods, including those surrounding the release of Neuren’s annual financial results early next year. All purchases and average prices will be disclosed to the ASX on the next business day following the transactions.
Advancing Drug Development Programs
While focusing on shareholder returns, Neuren remains committed to advancing its groundbreaking drug development programs. The company’s second drug candidate, NNZ-2591, is progressing through Phase 2 clinical trials for multiple neurodevelopmental disorders, with promising results already achieved. This complements the continued success of DAYBUE™, which is FDA-approved for treating Rett syndrome in adults and children aged two years and older.
Industry Recognition and Future Outlook
Neuren’s consistent performance and innovation in addressing urgent unmet medical needs have earned it the Australian Growth Company of the Year award for Health and Life Sciences in both 2023 and 2024. As the buy-back progresses, Neuren will maintain its focus on developing life-changing therapies and delivering sustainable growth for its investors.
For more details, contact Neuren’s investor relations team or CEO Jon Pilcher at the provided contact information.
