NEU 2.17% $21.22 neuren pharmaceuticals limited

Here's my take on the AGM - pleased I decided to go.I...

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    Here's my take on the AGM - pleased I decided to go.

    I substantially agree with Silentype's comments above, so I'll just give emphasis as to how I saw it play out rather than repeat what has already been posted.

    Acadia

    RT spoke in what could only be glowing terms about Acadia. He highlighted the effort they are putting into the planning of the phase 3 trial and noted they have somewhere around 24 people on that team. He also noted that there had been no (timing) slippage from the original announcement. You could only assume that Acadia is still well and truly in the ballgame for all unallocated parts of the NEU business.

    Torreya

    This item took up far more time in the Q&A session that followed the AGM than the rather brief mention in the Chairman's report.

    Two mains points here:

    a) NEU was determined to give Torreya as much free air as possible by initiating the (ROW) 3 month exclusivity agreement that Acadia had secured in their original agreement and subsequently dismissing the offer that ensued.

    b) A most interesting question was from a gentleman in the rear was (paraphrasing because I didn't take notes):-

    The balance sheet is in really good shape, you have a phase 3 trial starting Q4, yet you are expecting Torreya to deliver (at least) one outcome by the end of Q3. Why that timing?

    RT's answer centered around what he (and the Board) sees (mentioned plenty of times before) as his two main objectives - enhancing shareholder value and speed to market. I struggled slightly to see how that applied to trofinetide, so I'm assuming it applies to 2591.

    One way that might apply is that getting funds in prior to the trofinetide phase 3 trial is a hedge against it either not being as successful as expected or otherwise failing. Alternatively, and probably more likely, it would remove nearly every impediment in the path to getting 2591 approved.

    2591

    You could only conclude from RT's comments on 2591 that his expectations probably exceed those he has for trofinetide. He spoke a couple of times on building on the lessons they have learnt to date in progressing trofinetide.

    The main issues here appear to be:

    a) getting orphan drug designation for as many of the indications as possible
    b) setting up the phase 2 trial so that it overcomes the need for a phase 3 trial

    He stated (as Silentype mentioned above) that generating compelling statistical data from the phase 2 trial could see 2591 approved, provided it has achieved orphan drug designation.

    He further stated that a phase 2/3 trial has become the "norm" for orphan drugs. That trial is currently projected for the H2 2020 - not that far away.

    Mea Culpa

    RT stated that he regretted (and apologised for) not more forcefully highlighting the benefits to NEU of the (approximately) USD75m that Acadia has committed to trofinetide. He still believes that NEU made the correct choice of both partner and licensing arrangements and said that he wouldn't change anything except the point above. He highlighted the complete freedom NEU has with trofinetide outside of North America including access to every bit of information generated by the FDA process and believes the market has grossly underestimated that value.


    I note the point made above, by a couple of non-attendees maybe, that suggests RT blamed the ASK for the lagging SP. I didn't read it that way at all. He noted (in the Chairman's Report) the difficulty of being a small company on the ASX, but I see that applying no matter where NEU is listed.

    His comment about Lanstead being a disincentive to institutional investors was interesting and we'll get to see if that plays out from July onwards.

    I also don't buy Sillazze's view that Torreya has simply been retained to hide the current arrangements with Acadia. RT highlighted that Torreya are on a success fee, which suggests that it they don't deliver, they don't get other than their base. There is no way we should expect to know the intricate details of the Acadia deal without even allowing for the fact that so many possible licensing deals are currently being negotiated. Anyway, can you hide something that is already hidden?

    Good meeting, about the 4th or 5th one I've attended. Interesting at the end of Q&A, there was polite applause from many of those who attended - I'm assuming for the reasonably comprehensive answers provided and/or the extremely respectful manner in which our Chairman conducts himself.
 
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