Neuphoria Therapeutics Inc. Sees Significant Pre-Market Surge Following $15M Milestone Payment from Merck
Neuphoria Therapeutics Inc. (NASDAQ:NEUP) is experiencing a remarkable pre-market price surge of 21.5%, bringing its current price to $5.43. This surge is largely attributed to the announcement of a $15 million milestone payment from Merck, a significant development for the company.
The milestone payment was triggered by Merck's initiation of a Phase 2 clinical trial aimed at evaluating the safety and efficacy of MK-1167, an a7 nicotinic acetylcholine receptor positive allosteric modulator (PAM) designed to treat symptoms of Alzheimer's disease dementia. This advancement not only reflects the progress of Neuphoria's collaboration with Merck but also highlights the potential of their innovative drug candidates.
Spyros Papapetropoulos, M.D., Ph.D., President and CEO of Neuphoria, expressed enthusiasm regarding this milestone, stating, "We are excited to see this latest progress in our long-standing collaboration with Merck. The initiation of the Phase 2 trial validates our past joint discovery research efforts and Neuphoria's unique ion channel targeting platform that has generated several small molecule candidates currently in clinical and preclinical stages of development."
This $15 million payment marks the second milestone achieved in the collaboration with Merck. Under the agreement, Neuphoria is eligible to receive up to $450 million in additional milestone payments tied to various development and commercial milestones, along with royalties on net sales of any licensed medicines.
As Neuphoria continues to advance its lead drug candidate, BNC210, which is aimed at treating social anxiety disorder and post-traumatic stress disorder, the company is poised for significant growth. Investors are keenly watching how these developments will impact Neuphoria's future and its position in the biotechnology sector.
With a trading volume of 1,154,756 shares in pre-market, the market's response to this announcement underscores the excitement surrounding Neuphoria's innovative approaches to neuropsychiatric disorders and its partnership with Merck.
