Neuren shares fell when Europe knocked back its treatment for a rare childhood disease, then jumped when the regulator changed its mind. Here’s how it played out.
Shaw and Partners’ Adam Dawes used it on Switzer TV to show how a single decision can be the whole story for a biotech.
Neuren’s drug treats Rett syndrome, a rare neurological disorder that mostly affects young girls, at a rate of about one in 10,000.
For a company like Neuren, one regulator’s yes or no can move the whole share price.
“They pushed back on that, the stock fell over,” he said of the European decision. “Now the European thumbs up, and the stock has really started to rally on the back of that.”
Europe’s medicines committee gave a negative opinion earlier in the year, then reversed to a positive one at the end of June, and the shares moved sharply on each step.
Telix, on the same theme
Dawes paired Neuren with Telix Pharmaceuticals, which he said had good news on the United States regulatory front. He rates it his pick of the group.
“This one [Telix] is probably my number one in that space,” he said. “This is like a real speculator,” he added, “that could be a real ten-bagger,” meaning a stock that rises tenfold.
Watch the full interview:
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