Neuren Pharmaceuticals unveils on-market buy-back supported by strong cash flows

The Neuren Pharmaceuticals Ltd (ASX: NEU) share price is in focus today after the company announced a new on-market share buy-back program of up to 5% of its shares, supported by a strong cash position from its DAYBUE® franchise.

What did Neuren Pharmaceuticals report?

• Announced a new 12-month on-market buy-back for up to 5% of shares on issue
• Buy-back to be conducted under section 65 of the NZ Companies Act 1993
• Strong cash position backed by growing DAYBUE® cash flows
• Buy-back discretionary, can be varied, suspended or terminated any time
• Development programs for NNZ-2591 well funded alongside buy-back

What else do investors need to know?

The buy-back will not occur during designated blackout periods – importantly, this includes the period before full-year results are announced. The 2025 full-year results are scheduled for release on 27 February 2026.

Shares purchased will be cancelled on acquisition, reducing total shares on issue and potentially boosting per-share value for remaining shareholders. The buy-back is within regulatory limits and will not require shareholder approval.

Neuren continues to advance its promising drug pipeline, including NNZ-2591 development for rare neurodevelopmental disorders, and holds orphan drug status for several programs in the US and EU.

What did Neuren Pharmaceuticals management say?

Neuren Chair Patrick Davies commented:

The Board views the current share price as materially undervaluing Neuren’s assets, relative to internal analyses and the range of recently published analyst valuations. Neuren has a very strong cash position, supported by growing cash flows from the DAYBUE® franchise. Neuren’s NNZ-2591 development programs for Phelan-McDermid syndrome, Pitt Hopkins syndrome and HIE all are, and will remain, well funded alongside the buy-back.

What’s next for Neuren Pharmaceuticals?

Neuren plans to monitor market conditions and its operational performance to guide the pace and timing of its buy-back over the next 12 months. The company intends to keep investors updated on shares bought and prices paid.

Ongoing product development and expansion of its neurodevelopmental drug portfolio, including the progression of NNZ-2591 through major clinical milestones, remain in focus, backed by healthy cash flow.

Neuren Pharmaceuticals share price snapshot

Over the past 12 months, Neuren Pharmaceuticals shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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The post Neuren Pharmaceuticals unveils on-market buy-back supported by strong cash flows appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.