Yeah I think by partnering they get full control of their assets and maximise full value all they need is a cashed up partner.
Why sell for a low TO bid of US$4bn as most share holders feel would tick their box based on portfolio size, when the value of Daybue is worth that and the 2591 pipeline is undeniably many, many many more multiples of that just on current x 4 indications.
The fact that Blackstone was leaked indicated that management were at least exploring this option, whether or not its is actually them will have to be seen, but more often than not, where there is smoke there is fire, but a simple discussion with them as partner indicates Neu want to maximise the full potential of 2591 with full control.
In addition the extent they are going to with Phase 2's really having a look under the hood for phase 3's for feasibility and speed of the programs gives another clear indication they want to know what it all looks like before potentially giving it all away. This feasibility and phase 3 programs clearly indicated presenting a model to a bank if you like for funding/partnering.
If they have x 2 more trial come back with same results and PMD then they could arguably be the world leaders in developing drugs for neurodevelopment disorders, given the success rate of others big pharma's to date.
And as I have said many times before this Neuren team if they choose this partnering pathway will in fact leave a real legacy behind by actually changing the neuro space by not only Daybue, or 2591 in x 4 indications but in addition perhaps with ASD and many others to follow potentially, to the core I believe this is what this team is about and deserve the legacy that may come from this journey.
For those that have been focused on $50 TO price I think you will get you price range end of the year approx if you want to sell. x 3 successful trails results to come, partnering deal announced for 2591 fast tracking these smaller phase 3 trials immediately, and 2024 & 2025 Daybue revenue really being significant giving comfortable EPS $2 p/sh, short term that is conservative catalyst for $50 p/sh (but should be $70)
NEU Price at posting:
$19.71 Sentiment: Buy Disclosure: Held
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