Reata is the closest peer to NEU, similar FDA approved only treated for rare disease.
However, NEU is partnering with Acadia and receiving potentially further US$865m Plus 10% to mid 20% royalties on annual net sales.
Reata's market cap was US$1.187B prior to FDA approval, current market cap stands at US$6.448B;
NEU's market cap was US$0.639B prior to FDA approval, current market cap stands at US$0.98B (with cash A$224m).
Reata's market cap increases by US$5.261B since FDA approval received on 28 February 2023;
NEU's market cap increased by US$0.341B since FDA approval received on 10 March 2023;
NEU's distribution partner, Acadia's market cap increased by US$1.215B since FDA approval;
Combined market cap increases from NEU and Acadia, are
US$1.556B, which is far less than Reata's valuation increase of
US$5.261B.
Reata, "With that final regulatory hurdle cleared, the SVB Securities team contends Reata’s launch is “worth owning,” with Skyclarys on track to meet or exceed the
analysts’ 2023 sales forecast of $45.9 million."
NEU's Daybue, last quarter sales was US$23.2m, and forecast to reach US$45m-55m for current quarter, 2023 sales are likely to well above US$120m.
As yesterday's announcement, NEU will be added into ASX200, that will trigger index funds buys around $70m worth NEU shares over next two weeks, imo.
It's interesting to see what those large funds are going to re-act this massive valuation gap between NEU and Reata.
All imo and GLTA.
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