ASX 200 healthcare stock Neuren Pharmaceuticals Ltd (ASX: NEU) has posted impressive gains over the past year but one director appears to still see value in today's share price.
Neuren shares closed the session on Thursday at $19.31, up 2.6% for the day. The ASX 200 healthcare stock outperformed the benchmark S&P/ASX 200 Index (ASX: XJO), which rose by 0.44%.
Over the past year, the Neuren Pharmaceuticals share price has risen 48.3% while the ASX 200 has lifted just 8.6%.
So, it's interesting to see one of the company directors ploughing more of his own funds into the ASX 200 healthcare stock despite this impressive price lift.
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Director invests almost $100,000 in Neuren shares
Neuren Pharmaceuticals issued a notice to the ASX yesterday advising that director Joseph Basile has increased his stake in the company by 50%.
Basile bought 5,000 Neuren shares on-market on Tuesday through his self-managed super fund (SMSF) for $19.49 apiece, for a total consideration of $97,450.
He already owned 10,000 Neuren shares, so the purchase lifted his stake in the ASX 200 healthcare stock by 50%.
What's the latest news from this ASX 200 healthcare stock?
The last piece of price-sensitive news from Neuren came on 27 May when the company announced top-line results from the Phase 2 clinical trial of its second drug candidate, NNZ-2591.
The drug treats Pitt Hopkins syndrome (PTHS), which is a neurodevelopmental condition that causes developmental delays. It causes moderate to severe intellectual disability, hyperventilation and/or breath-holding while awake, seizures, gastrointestinal issues, speech difficulties, and sleep disturbances.
The top-line results showed a "statistically significant improvement" across all four efficacy measures.
Neuren Pharmaceuticals CEO Jon Pilcher said:
We are very excited about the results of this first clinical trial in Pitt Hopkins patients. This underserved community has such urgent unmet need and we can now continue towards our goal of developing a first approved treatment.
The ASX 200 healthcare stock rocketed 15.7% on the day of the news.
PTHS is caused by the loss of one copy, or a mutation, of the TCF4 gene on the 18th human chromosome. The incidence of PTHS is estimated at between 1 in 11,000 people and 1 in 41,000 people.
Neuren develops drugs for serious childhood neurological disorders that have no or limited approved treatments.
In the United States, all of its drugs have the designation of 'orphan drug'. Biotechs working on orphan drugs are given special incentives, such as longer exclusive marketing rights, to ensure they make a profit.
Neuren also has an orphan drug designation for NNZ-2591 in Europe.
Neuren Pharmaceuticals share price snapshot
This ASX 200 healthcare stock has flown 1,565% higher over the past five years.
This compares to an 18.3% gain for the ASX 200.
