Neuren secures funds to progress Rett syndrome trial

Company News

by Jessica Amir

Neuren Pharmaceuticals (ASX:NEU) has secured funding to commence key activities for Phase 3 of its trial, aimed at developing treatment for Rett syndrome.

The biopharmaceutical company focused on treating brain injuries, neurodevelopment and neurodegenerative disorders is set to receive $11.5 million through the placement of new shares.

As part of the new funds, $10 million of that coming from UK fund, Lanstead Capital, while Neuren also received supporting investments from Rettsyndrome.org.

As a result, the company will now finalise the drug manufacturing process for commercial supply, meet with the US FDA to discuss development and also conduct further studies as part of its Phase 3 trial.

Neuren says despite its share price being under pressure since its March’s trial results exceeded expectations, it has now removed the funding uncertainty, while it also expects to receive FDA feedback within three months.

In additional to that, the company says over the next 18 months Lanstead’s investment will potentially increase its share price.

Shares in Neuren Pharmaceuticals (ASX:NEU) are trading 11.84 per cent lower to 6.7 cents. 
 

Jessica Amir

Finance News Network
Jessica is a senior finance journalist and presents the Market Outlook, Market at Midday and Market Wrap. She also presents ASX company news and interviews CEOs. She joined FNN in January 2017 with six years of broadcast journalism experience. She worked as a journalist and producer with Sky News Business, ABC 1, ABC's The Business and ABC24. She also worked in regional Australia for Prime 7 and WIN News as a TV reporter. In her prior life she worked as a financial planner.