Neuren has indicated its ethical priority to have its products available for disease sufferers as early as possible. This would be a major factor in any decision to accept an early takeover offer from a suitor able to do that.
With an apparent suite of neurological indications able to be addressed by the NNZ-2591 platform, any attempt by Neuren alone to develop them will be heavily constrained by costs, and timelines to patients would suffer considerably as a result.
One way of relieving ethical pressure to accept a premature offer would be the partnering or full sale of lower priority assets, while maximising value to NEU shareholders through full development of other selected indications. Funds received from the former would support the latter.
Phelan-McDermid and Pitt-Hopkins appear to be the indications prioritised for full development at this stage.
With Phase1 already achieved for NNZ-2591, any new indications post pre-clinical can enter the clinic at the higher value Phase2 level, and the same selective strategy can be applied to their development.
Such a strategy would indicate to a potential suitor that Neuren is capable of sustaining the long-term development of its assets, and therefore would be well placed in any TO negotiations as a result.
NEU Price at posting:
$15.57 Sentiment: Buy Disclosure: Held
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