The Neuren Pharmaceuticals Ltd (ASX: NEU) share price is racing higher again on Wednesday.
In morning trade, the biotech company's shares are up a further 14% to a multi-year high of $11.36.
This means the ASX 300 share has now risen a whopping 48% over the last three sessions.
As you can see below, this has driven the Neuren share price almost 200% higher since this time last year.
Why is this ASX 300 share rocketing this week?
Investors have been buying this ASX 300 share after its treatment for Rett's Syndrome was granted US FDA approval.
This is the first and only approved treatment for Rett Syndrome, which is a rare genetic neurological and developmental disorder that affects the way the brain develops.
The company has a deal in place with its partner Acadia Pharmaceuticals (NASDAQ: ACAD) that could result in significant revenue generation.
This includes royalties of up to 15% of net sales above US$750 million and sales milestone payments of up to US$350 million on total sales above US$1 billion in a calendar year.
Can its shares keep rising?
The good news is that Bell Potter believes the Neuren share price can keep rising even after its stellar gains this week.
This morning, the broker has retained its speculative buy rating with an improved price target of $13.67. This suggests that the ASX 300 share could rise a further 20% from current levels.
Bell Potter commented:
This is a huge success for the company, and we now expect income from trofinetide to come in at up to A$104m plus royalties in 2023. The next potential milestone payment to Neuren would be US$40m (A$61m at an assumed exchange rate of 0.65), payable following the first commercial sale of trofinetide in the United States.
Subsequently, Neuren is eligible to receive double-digit percentage royalties on net sales of trofinetide in North America, plus milestone payments of up to US$350m (A$538m) on achievement of a series of four thresholds of total annual net sales.
