NEU 0.15% $13.13 neuren pharmaceuticals limited

thought i would repost this post by tonyindo as i believe it...

  1. 528 Posts.
    thought i would repost this post by tonyindo as i believe it shows neu is not experiencing a pump and dump.

    "Whilst things might 'appear' to be quiet at present, I don't believe this to be the case at all.

    I've been reflecting on one of fellow members Wayne's old posts (see below) and here are my thoughts in regards to this.

    Here's Waynes post (please note this is an old post):

    Hi,

    The answer to your valuation question is readily available.

    Neuren have calculated, based upon a successful result from the phase II trial, a net present value in excess of $US250m with peak gross revenues of $US341m per annum within the first 10 year sales period (US sales only) -
    equates to an undiluted share price of 70c or a multiple of 20 times current share price.

    Alternatively, the directors could progress towards an end trade sale. I have already mentioned that Dr Doug Wilson is also the Chairman of Phylogica. The business model which has been adopted by Phylogica is the development of partnerships with big pharma with the ultimate objective of an end trade sale. In the case of Phylogica the directors are targeting a valuation in the ballpark of $US450m. If Neuren adopts a similar strategy, which is entirely plausible given the input of Dr Wilson, its valuation could be calculated on the basis of its earnings times an appropriate earnings multiple - pure speculation on my part but the net profit on $US341m times say a multiple of 10 would be a big number.

    I understand that traumatic brain injury (TBI) is by far the largest killer of people under 45 years of age - currently there are no drugs registered for treatment.

    My thoughts on the above post...

    I think it's very plausible and Wayne's post doesn't even touch on the potential value of Rett Syndrome. Ideally, a partnership yields the risk-adjusted value of the assets without a partnership. Where partnerships tend to deviate from that ideal is when one of the parties is at a
    significant disadvantage (usually, when the smaller company doesn't have the money to reach the milestones necessary to monetize the asset). In Neuren's case, between money in the bank and non-dilutive funding, they don't have that disadvantage.

    Hold on tight to your shares, as a re-rating could very well be closer than we think."
 
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