Given Acadia gross margin of 91.6%, even any of its ingredients were imported, an increase in the cost of the drug would be minimal.
As of April 5, 2025, the European Union (EU) imposes a 20% tariff on a broad range of imported goods from the United States. However, finished pharmaceutical products are currently exempt from these tariffs.
Falling Aussie dollar is in favor of NEU, annual royalty income from DAYBUE for 2025 will be in the range of $67m to $72m at current exchange rate, plus bank interest income on the $300m plus cash reserve, NEU's 2025 revenue could be in the range of $82m to $90m.
Once European market is open, say, next year, annual royalty income should easy fetch $100m a year.
Don't forget NEU still has potential milestone payments of up to US$727m, some of them are easily achievable. I believe the 20% of the US$727m should be achievable, that's about $240m cash.
I do think Acadia should seriously consider to acquire NEU, by taking advantage of this Trump tariff market crash.
All imo.
NEU Price at posting:
$9.86 Sentiment: Buy Disclosure: Held
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