Why is this ASX 200 healthcare stock surging 32% on Monday?

Strong trial results are getting investors excited today.

| More on:
Scientists working in the laboratory and examining results.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Neuren Pharmaceuticals Ltd (ASX: NEU) shares have returned from their trading halt with an almighty bang.

In morning trade, the ASX 200 healthcare stock is up 32% to a record high of $22.70.

Why is this ASX 200 healthcare stock rocketing?

The catalyst for this rise has been the top-line results from its Phase 2 clinical trial of NNZ-2591 in children with Phelan-McDermid syndrome (PMS).

According to the release, a significant improvement was observed by both clinicians and caregivers from treatment, across multiple efficacy measures. Pleasingly, improvements were consistently seen across many of the core PMS characteristics.

The company notes that PMS has severe quality of life impacts for those living with the syndrome, as well as parents and siblings. At present, there are no approved treatments for PMS despite its severely debilitating impact.

The ASX 200 healthcare stock's CEO, Jon Pilcher, commented:

The strength and consistency of these results has exceeded our expectations and gives us high confidence as we strive to accelerate the development of a potential first therapy to address the overwhelming unmet medical need of PMS. We are very grateful to all the people at the trial sites in the United States and in the PMS community who enabled this groundbreaking trial to be completed successfully.

An investigator in the study, Elizabeth Berry-Kravis, MD, PhD, from Rush University Medical Center, adds:

Although the Phase 2 trial was an open label study, I am very encouraged that both clinicians and caregivers observed pervasive improvements across multiple, clinically important features of PMS including communication, cognition, learning, socialisation and behaviour. Improvements typically considered clinically meaningful were achieved in the clinician rated CGI-I as well as the caregiver rated CIC. I look forward to seeing this program advance to the next stage of development for the PMS community.

Based on these results, investors appear optimistic that this could be another treatment that Neuren generates significant royalties from in the near future.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

pause in medical asx share price represented by doctor holding hand up in stop motion
Healthcare Shares

ASX 200 healthcare stock up 40% in 6 months halted ahead of major trial results

Neuren Pharmaceuticals will reveal Phase 2 clinical results for its second drug candidate shortly.

Read more »

Shot of a young scientist using a digital tablet while working in a lab.
Healthcare Shares

Can CSL shares deliver market-beating returns for investors?

Is this a good place to invest your hard-earned money? Let's find out.

Read more »

A man in a business suit whose face isn't shown hands over two australian hundred dollar notes from a pile of notes in his other hand to an outstretched hand of another person.
Healthcare Shares

Guess which ASX All Ords insider just bought 50 million shares in their company

Some major insider buying has taken place. What does this mean?

Read more »

Man with a sleep apnoea mask on whilst sleeping.
Broker Notes

ResMed shares higher as company 'turns the GLP threat into an opportunity': Fundie

ResMed is having a great run in 2024 with the share price up 29% already.

Read more »

Male doctor in a lab coat working at laptop looking serious.
Share Fallers

Why this ASX 200 healthcare stock is tumbling 6% today

Inflation pressures are claiming another victim as this healthcare giant lowers its FY24 expectations.

Read more »

Research, collaboration and doctors working digital tablet, analysis and discussion of innovation cancer treatment. Healthcare, teamwork and planning by experts sharing idea and strategy for surgery.
Healthcare Shares

Buy, hold or sell these 3 ASX 200 healthcare shares: Experts

These experts reveal their calls on CSL, Resmed and Sonic Healthcare shares today.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Share Gainers

Guess which ASX healthcare stock just exploded 63% on Federal budget funding news!

Investors are bidding up the ASX healthcare stock amid extra funding in the Federal budget.

Read more »

two doctors smile as they sit together at a desk looking at a patient's Xray.
Healthcare Shares

This ASX 200 healthcare stock just hit an all-time high: Is it too late to buy?

The valuation of this high-performer has soared.

Read more »