Neuren Media and Analyst Coverage, page-1315

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Eagle0

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17/08/24

19:16

Post #: 75253170
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Originally posted by Taurean7: ↑

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.

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That's something I've been considering as well, whether the offloading of trofinetide might be possible and if it could support Neuren's development going forward. A sale to Acadia with a new agreement outlining who treats what with the two assets. Sell trofinetide for $1 billion or so, the current agreement gets ripped up and a new one negotiated with equal standing, Acadia treats a suite of disclosed indications and stays in their lane, Neuren shores up its finances and adds value treating an array of indications and pushing up its asking price in the event of a takeover bid.

And arguably this is something Acadia could afford to do by capital raising (issuing debt?), it's not super expensive when compared against their financials. They know trofinetide works, just less ably than 2591, they're not sure how their other assets will go since they have a long development path to travel.

A fantasy perhaps, but who knows?

Last edited by Eagle0: 17/08/24

NEU Price at posting: $15.57 Sentiment: Buy Disclosure: Held
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