Neuren Pharmaceuticals Ltd (ASX: NEU) shares soared 16% yesterday on the back of impressive net sales and income results.
For those unfamiliar, it is a biopharmaceutical company. It specialises in developing new therapies for neurodevelopmental disorders that emerge in early childhood and are characterised by impaired connections and signalling between brain cells.
Image source: Getty Images
Why did Neuren Pharmaceuticals shares rise?
As reported by The Motley Fool yesterday, the company reported record Q2 DAYBUE net sales of US$125 million. This was up 30% on last year, with Q2 royalty income jumping 34% to US$12.9 million.
Speaking on the results. Neuren CEO Jon Pilcher said:
We are pleased to see an exceptional quarter for DAYBUE, with very strong sales volume growth reflecting the early success of STIX in the US, as well as achievement of the positive CHMP opinion – both important steps toward bringing trofinetide to more patients with Rett syndrome globally. Subject to approval being confirmed, we now look forward to Acadia's anticipated European launch later this year.
Since the 26 of June this year, Neuren Pharmaceuticals shares are up an impressive 77%.
After such a quick rise, investors may be wondering if they have missed the boat.
The team at Bell Potter have issued a report following the gain. The broker believes there is still plenty of room for growth.
Here's what the broker had to say.
Strong update
According to the report, it was a strong update for Daybue, reporting Q2 sales of US$125 million, up 30% year-on-year and well above expectations.
Bell Potter said the growth was driven by strong uptake of the new STIX powder formulation, which is now used by around 60% of US patients and has also encouraged some former patients to restart treatment.
European approval is expected by the end of Q3 2026, with sales likely to begin in Q4, triggering a US$35 million milestone payment to Neuren.
Acadia also raised its 2026 sales guidance to US$480-510 million, highlighting continued confidence in Daybue's growth.
For Neuren Pharmaceuticals, this means higher expected royalty income and milestone payments over the next few years, with Bell Potter forecasting around A$78 million in royalties plus a A$48 million milestone in 2026, rising to approximately A$100 million in royalties and a A$71 million sales milestone in 2027.
Price target increase
Based on this guidance, Bell Potter retained its buy recommendation for Neuren Pharmaceuticals.
It also raised its price target to $25.50 (previously $23.50).
From current levels, this indicates an upside potential of almost 18%.
