Neuren Pharmaceuticals (ASX:NEW)an Australian biotech focused on developing treatments for neurological disorders, has announced a substantial share buyback program in the market. The company plans to repurchase up to A$50 million of shares, citing stable cash inflow from sales of its Rett syndrome drug, DAYBUE, in the United States as a driving factor. The program allows Neuren to repurchase and cancel shares over a 12-month period, limiting purchases to 5% of total shares outstanding.
Rett syndrome is a rare neurological disease that mainly affects girls, causing serious cognitive and physical disorders. The condition typically manifests itself in early childhood, leading to symptoms such as loss of speech, motor difficulties, seizures and irregular breathing patterns. Although individuals with Rett syndrome usually exhibit normal initial growth, they experience progressive loss of ability as the disorder progresses, with no known cure. DAYBUE (trofinetide) from Neuren is the first drug approved by the FDA for the treatment of Rett syndrome in both children and adults, filling a significant therapeutic gap. Relieves some of the main symptoms of Rett syndrome.
Neuren’s buyback follows recent news from its licensee, Acadia Pharmaceuticals, which sold a rare pediatric disease priority review voucher for $150 million. Neuren will receive a third of these proceeds, supplementing the revenue of DAYBUE, which achieved record revenue of $91 million in the third quarter of 2024.
The company will continue to evaluate the conditions, reserving the right to suspend or adjust the repurchase. The restrictions include blackout periods, particularly around the release of Neuren’s annual results early next year. The buyback will not exceed Australian regulatory limits, negating the need for shareholder approval.