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Thoughts on Neuren Pharmaceuticals Limited (NEU)

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Thoughts on Neuren Pharmaceuticals Limited (NEU)

Hi James! I was just wondering if you had any comments regarding Neuren Pharmaceuticals Limited following the recent approval from the FDA for their drug for Rett syndrome, a severe neurological disorder, estimated to affect 350,000 girls and women worldwide. The stock rallied ≈ 20% following the news. I was wondering if you see further growth potential in this company (especially with healthcare being more resilient through downturns than other industries) or has this recent rally overvalued the stock. Cheers


Hi Ollie,

Biopharmaceutical company NEU has been cracker over the last 16 months rallying 6-fold, history tells us these moves rarely deliver significant follow through but obviously there always are exceptions. While we have had no real success investing in Biotech’s in the last decade – it’s a hard place to invest with certainty – if we had been fortunate enough to be long NEU into the FDA approval we would probably take part part profit and let the balance run i.e. similar to how we have managed  a number of our other major winners over the last year.

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Neuren Pharmaceuticals (NEU)
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