Thoughts on Neuren Pharmaceuticals Limited (NEU)

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 17/03/2023

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

Answer

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.

chart

Neuren Pharmaceuticals (NEU)

LAST UPDATED 16/03/2023 11:55

Latest Reports

Weekend report 27/04/2024

Weekend Q&A: Strong inflation crushes hopes of a rate cut in 2024

Afternoon report 26/04/2024

The Match Out: ASX (nearly) gives up week’s gain in tough Friday session

The local market dropped ~100 points on the open, failing to see any reprieve following two weaker sessions out in the US since our close on Wednesday. After dropping back below 7600 the index traded in a reasonably tight 30-point range for the rest of the session, failing to join in on the rally across the region and what’s showing on the US Futures ahead of their Friday session. BHP managed to take 31pts off the market alone today, weakness coming after they lobbed an all scrip bid for Anglo American (AAL LN). Despite the soggy end to the week, the ASX200 finished marginally higher, +8pts / +0.11%.