Neuren launches on-market buy-back as board flags undervalued shares

Neuren Pharmaceuticals Limited ( (AU:NEU) ) has provided an update.

Neuren Pharmaceuticals has launched an on-market share buy-back program of up to 5% of its shares on issue, to be conducted over a period of up to 12 months under New Zealand companies law, with purchases and pricing at the company’s discretion and subject to market conditions and regulatory blackout periods. The board argues the current share price materially undervalues Neuren’s assets given its strong cash position and growing DAYBUE franchise, and it plans to fund the buy-back while maintaining full support for ongoing NNZ-2591 development programs, with all repurchased shares to be cancelled, modestly reducing the share count without requiring shareholder approval.

The buy-back program may be varied, suspended or terminated at any time, and Neuren will report the number of shares and average price bought back to the ASX on the following business day, providing transparency for investors. By signalling confidence in its valuation and balance sheet while committing to continued investment in its pipeline, Neuren is using capital management to bolster shareholder returns and reinforce its positioning in the rare neurological disease market.

The most recent analyst rating on (AU:NEU) stock is a Buy with a A$27.00 price target. To see the full list of analyst forecasts on Neuren Pharmaceuticals Limited stock, see the AU:NEU Stock Forecast page.

More about Neuren Pharmaceuticals Limited

Neuren Pharmaceuticals is a biopharmaceutical company focused on developing new drug therapies for serious neurological and neurodevelopmental disorders that emerge in early childhood and lack effective treatments. Its lead commercial product, DAYBUE (trofinetide), including DAYBUE STIX, is approved in the United States for Rett syndrome under an exclusive global licence with Acadia Pharmaceuticals Inc., while its second candidate, NNZ-2591, is in late-stage development for multiple rare syndromes with orphan drug designations in the U.S. and Europe.

Average Trading Volume: 354,351

Technical Sentiment Signal: Sell

Current Market Cap: A$1.59B

See more data about NEU stock on TipRanks’ Stock Analysis page.