Neuren Pharmaceuticals (ASX:NEU), an Australian biotech focused on developing treatments for neurological disorders, has announced a substantial on-market share buy-back program. The company intends to repurchase up to A$50 million in shares, citing stable cash inflow from sales of its Rett syndrome drug, DAYBUE, in the United States as a driving factor. The program allows Neuren to reacquire and cancel shares over a 12-month period, capping purchases at 5% of total shares outstanding.
Rett syndrome is a rare neurological disorder that primarily affects girls, causing severe cognitive and physical impairments. The condition typically manifests in early childhood, leading to symptoms such as loss of speech, motor difficulties, seizures and irregular breathing patterns. Although individuals with Rett syndrome usually experience normal early growth, they face a progressive loss of abilities as the disorder advances, with no known cure. Neuren's DAYBUE (trofinetide) is the first FDA-approved drug for treating Rett syndrome in both children and adults, filling a significant treatment gap. It alleviates some of the core symptoms of Rett syndrome.
Neuren’s buy-back follows recent news from its licensee, Acadia Pharmaceuticals, which sold a Rare Pediatric Disease Priority Review Voucher for US$150 million. Neuren will receive a third of these proceeds, supplementing its revenue from DAYBUE, which achieved record sales of US$91 million in the third quarter of 2024.
The company will continue to assess conditions, retaining the option to suspend or adjust the buy-back. Restrictions include blackout periods, notably around Neuren’s full-year results release early next year. The buy-back will not exceed Australian regulatory limits, negating the need for shareholder approval.
