Neuren Pharmaceuticals (ASX:NEU) has always been a Blue Lake Invest favourite, and we’d probably be doing ourselves a disservice if we didn’t point out the fact that we’ve been pumping Neuren’s tyres for a very long time. Check out some of our past articles here. So why is Neuren lighting up your inbox again?
Anyone who’s been following the fortunes of Neuren knows that last week we finally got the NEUws (first and final use of that one, promise) we were after, as the stock entered a trading halt prior to the release of the phase II clinical trial results concerning the use of Trofinetide to treat moderate to severe Traumatic Brain Injury (TBI). For those of you who aren’t up to speed with the FDA’s (that’s the Food and Drug Administration) incredibly simple and intuitive testing process phase II is critical. All prior testing is basically done to determine whether or not the drug is likely to be harmful to those who take it, and doesn’t aim to establish anything about the use of the drug treating the condition it was intended for. Phase II is the first round of testing that actually evaluates the effectiveness of the drug, and as such has the potential to dramatically increase the value of Neuren’s patent holding (assuming success). So when the results are released tomorrow (Wednesday 27th April) we could have quite a lot to celebrate.
If Trofinetide can be proven to successfully reduce the damage resulting from TBI a global market of US $4 Billion (annually) becomes ripe for the taking. TBI is a factor in about one third of all injury related deaths in the developed world so Trofinetide could form a vital part of all first response treatments for any injuries known to involve head trauma. The drug has also been tested in partnership with the United States Defence Force and has been funded through grants in the past due to its potential for use in combat situations. Some cheeky Neuren advocates have also (unofficially) attempted to broker a partnership between Neuren and the NFL to reduce the impact of Chronic Traumatic Encephalopathy (CTE) arising from concussive injuries occurring in American Football matches. I couldn’t find the thread where this was discussed on Hot Copper after returning to link it to this article so I can only assume this information is now commercial-in-confidence and that Neuren will soon be signing a big money deal with the NFL.
Even if the phase II TBI trial turns out to be a flop Neuren is still developing Trofinetide as a treatment for Rett and Fragile X Syndromes; two other completely unrelated conditions that each hold massive commercial market appeal in their own right. Neuren has FDA granted “Orphan Drug” status approved for Trofinetide as applied to Fragile X syndrome, which gives Neuren incentives for developing the treatment as well as quicker progression through clinical trials.
Neuren shares stood at 10.5 cents before the trading halt, and it’s anyone’s guess what might happen when the results are released to market. As already discussed Trofinetide has plenty of commercial value even if it can’t be used for TBI treatment, so if the ASX:NEU price takes a hit based on poor TBI results tomorrow might be a great opportunity to grab some cheap Neuren stock for the first time, or to increase your holding.
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