Neuren Pharmaceuticals Ltd [ASX: NEU] shares increased by almost 7% yesterday.
The company’s share price is currently $3.29, up from $3.09 on Monday.
Neuren Pharmaceuticals is a biopharmaceutical company developing therapies for brain injury, neurodevelopment and neurodegenerative disorders.
Why has Neuren’s share price increased?
The increase in share price came after an announcement by Neuren, revealing a potential partnership with an undisclosed US pharmaceutical company.
The potential partnering arrangement is for the development and commercialisation of trofinetide, a drug designed to help improve the natural balance of brain function.
Both parties have signed an Exclusivity Deed that provides three months of exclusive negotiations.
The deed stipulates that the undisclosed US company will invest US $4 million to subscribe for 1,330,000 Neuren shares at $4.00 per share. This is approximately 33% above the 10 day volume-weighted average share price.
It is also states that if either party fails to complete the transaction, a break-free of US $500,000 will be payable to the other party.
What’s next for Neuren Pharmaceuticals?
Neuren has already completed phase 2 development of trofinetide for Rett syndrome and X-syndrome, moderate to severe traumatic brain injury and concussion.
Phase 2 programs for both Rett Sydrome and Fragile X-syndrome have been granted fast track designation by the US Food and Drug Administration and Orphan Drug in both the US and the European Union.
Currently there are no approved drugs for any of these conditions and there are very few drugs in clinical development. If Neuren can crack this, trofinetide has the opportunity to be the first approved drug for treatment.
We will just have to wait and see who this undisclosed US pharmaceutical company is.
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