NEU 3.15% $21.27 neuren pharmaceuticals limited

I don't believe Neuren will fold because they are lucky enough...

  1. 388 Posts.
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    I don't believe Neuren will fold because they are lucky enough to be sitting on a pile of cash. But I think if they push our the Lavender trial out go the payment milestones from Acadia, and hence the increased cash burn if they continue to pursue NNZ-2591. I don't like the chances of raising capital in this market either. So I think the announcement is likely to impact the NNZ-2591 program equally. Just more SP hammering to come for sure.

    I wouldn't be naive and think the world goes back to normal after this and this will be short lived. I'd love to be wrong. Below is commentary from Colin Twiggs from the Patient Investor.

    No warning. No volatility working its way higher as market fears build. Just a sudden and abrupt crash.
    It's more reminiscent of October 1987, when the Dow fell 22.6% in a single session, than the most recent two stock market crashes (2000 & 2008).
    In 1987 the Dow from a high of 2750 before finding support at 1750. A fall of 36%. But this time is different.
    The '87 crash was largely attributable to over-priced stocks and rising corporate debt levels. We have both of them again in 2020, but in spades.
    Corporate debt at more than 30% of GDP, dwarfs the 1987 peak of 19.5%.
    And Price-Earnings of 23.12 at the end of 2019 is way above the 18.69 from 1987.

    This still has a long way to go.
 
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