The rationale for the consolidation of shares in late 2017 was to 'remove an impediment to investment for some US institutions'. There were however, other impediments as well.
US fund managers would also have wanted Neuren to demonstrate that it could complete the development for Trofinetide for patients in North Amercia. The license agreement with Acadia ticks those boxes. The comments by Dr Treagus that Acadia's team has a proven record in developing and commercialising medicines in CNS disorders and have 'deep pockets' are directed to not only Australian retail investors but also US fund managers. The exception of course is that they do not need to be told.
Arguably, Australia does not have the depth in capital markets for junior biotechs who want to venture beyond a quick buyout albeit it isn't that quick considering the couple of decades of development to date. US fund managers will be running the ruler over Neuren. All things considered the discount in valuation to Acadia will prove irresistible, more so because Neuren controls the sleeper asset which is about to be given centreplace.
US Fund Managers
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Last
$19.02 |
Change
-1.250(6.17%) |
Mkt cap ! $2.428B | |||
| Open | High | Low | Value | Volume |
| $20.40 | $20.50 | $18.82 | $19.92M | 1.034M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 1652 | $19.00 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $19.03 | 11612 | 4 |
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| Last trade - 16.10pm 04/06/2024 (20 minute delay) ? |
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Last
$19.10 |
Change
-1.250 ( 6.19 %) |
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| Open | High | Low | Volume | ||
| $20.39 | $20.46 | $18.83 | 299764 | ||
| Last updated 15.59pm 04/06/2024 ? | |||||
| NEU (ASX) Chart |