Following the announcement of a significant financial milestone, shares of Neuphoria Therapeutics Inc. (NASDAQ: NEUP) have experienced a notable increase. During the latest pre-market trading session, NEUP stock reached $4.97, reflecting an 11.73% gain.
Milestone Payment from Merck
Neuphoria Therapeutics has revealed that it is poised to receive a $15 million milestone payment from Merck, known as MSD outside the United States and Canada. This payment has been prompted by Merck’s beginning of a Phase 2 clinical study for MK-1167, an α7 nicotinic acetylcholine receptor positive allosteric modulator (PAM). The purpose of the NCT06721156 trial is to evaluate MK-1167’s safety and effectiveness in treating Alzheimer’s disease dementia symptoms.
The partnership and Scientific Progress
The latest progress underscores Neuphoria Therapeutics’ enduring partnership with Merck. The Phase 2 trial’s start is evidence of NEUP’s novel ion channel targeting platform, which has produced a number of small-molecule candidates that are presently undergoing different phases of preclinical and clinical development. Neuphoria Therapeutics is still investigating the possibility of α7 nicotinic acetylcholine receptor-targeted therapies to treat serious neuropsychiatric disorders.
Strategic and Financial Implications
This milestone marks the second achievement under Neuphoria’s collaboration agreement with Merck. As part of the partnership, NEUP is eligible to receive up to $450 million in additional milestone payments linked to developmental and commercial progress. Furthermore, the company stands to gain royalties from net sales of any successfully licensed medicines.
Additionally, Neuphoria Therapeutics recently completed its redomiciliation, shifting governance from Bionomics’ original organizational framework to its newly established Certificate of Incorporation and bylaws. This strategic transition positions NEUP as the successor issuer to Bionomics, enhancing its corporate structure and operational stability.
Market Position
With a market capitalization of approximately $6 million, NEUP currently holds an ST score of 24 within the Biotechnology sector. Investors seeking insights into other biotechnology stocks with a market cap under $10 million but higher ST scores can explore further details via the ST screener link.