As the market whipsaws away this week, one ASX 200 healthcare share is on ice on Wednesday.
Neuren Pharmaceuticals Ltd (ASX: NEU) requested the trading halt pending an announcement on one of its clinical programs.
The business also released its financial results for the three months ending June 30, 2024.
Prior to the requested halt, the ASX 200 healthcare stock sat at $17.09 per share. Let's take a look.
ASX 200 healthcare share reports numbers
Neuren also posted its second-quarter earnings today. Although, this wasn't the reason for the requested trading halt.
Critically, the company reported updates on its Rett syndrome treatment, trofinetide. It is marketed under the label Daybue.
The label is being studied in a clinical trial titled "LOTUS".
Its partner in the trial – and in selling Daybue to the market – is Acadia Pharmaceuticals Inc (NASDAQ: ACAD).
This week, Acadia posted its Q2 numbers. Sales of Daybue were US$84.6 million for the quarter, up from US$75.9 million the three months prior.
Neuren books royalties on Acadia's Daybue sales. Acadia's Q2 results provided the ASX 200 healthcare stock with AUD$13 million in royalty income.
But these figures fell short of market expectations. Neuren said the rate of patient additions was "slower than expected", which caused Acadia to revise its full-year projections.
The momentum in Q2 was encouraging, however the net rate of patient additions in Q2 was slower than expected, which has caused Acadia to update its guidance for net sales in 2024 to US$340-370 million (lower and narrower than the previous range of US$370-420 million).
Assuming the updated guidance range is met and an exchange rate of 0.65, Neuren would earn royalties of A$55-61 million (was A$61-70 million), plus A$77 million from the first sales milestone payment of US$50 million due for the first calendar year in which net sales exceed US$250 million.
Other developments
Neuren's other major development involves NNZ-2591, the primary reason its shares are halted today.
Data shows promise from NZ-2591 in treating multiple neurodevelopmental disorders.
The compound is being investigated in a phase 2 trial for Pitt-Hopkins syndrome. Data has shown progress in diagnosed children's "communication, social interaction, cognition, and motor abilities".
The ASX 200 healthcare stock will meet with the US FDA in September to discuss the compound's role in treating more conditions. Preparations for Phase 3 trials are already underway.
The company said:
[T]he reason for the request is pending an analysis of data and an announcement by the Company in relation to the top line results of its Phase 2 clinical trial of NNZ-2591 in Angelman syndrome.
[Neuren] requests that the trading halt remain in place until the Company releases an announcement in relation to the Phase 2 clinical trial of NNZ-2591 in Angelman syndrome or until the commencement of trading on Friday 9 August 2024, whichever is earlier.
Keep an eye out for the update by Friday.
What's next?
Brokers are bullish on Neuren shares. According to my colleague James, Bell Potter sees big returns in the stock moving forward.
It is constructive on the NZ-2591 situation, noting the clinical program will likely "remain top priority".
The broker values Neuren at $28 per share, implying a 63% upside potential if correct.
Investors have a bit to unpack with this ASX 200 healthcare share. Whilst frozen today, it will make an announcement later this week.
Neuren shares are up 42% in the past 12 months. As always, remember to conduct your own due diligence.
