The rising star in the Australian listed healthcare industry, Neuren Pharmaceuticals, is understood to have brought in a defence adviser after fielding buyer interest from US-based industry giants.
DataRoom understands that Jefferies has won the mandate.
Neuren is being targeted by US pharmaceutical companies because it offers a unique solution for a rare disease and has hit all of its milestones.
It is now worth $1.9bn, with its share price soaring to almost $15 from $1.50 in 2021.
The company, run by Jon Pilcher and chaired by former Ebos and Symbion chief Patrick Davies, is a leader in neuro-developmental disorder therapy development, targeting debilitating disorders that emerge in early childhood and are characterised by impaired connections and signalling between brain cells.
It has developed the world’s first and only approved therapy for Rett Syndrome, with approval in the US.
Its second product is in Phase 2 clinical trials, targeting Phelan-Dermid syndrome, Angelman syndrome, Pitt Hopkins syndrome and Prader-Willi syndrome. It has shown positive effects in mouse trials of each syndrome and successfully completed a Phase 1 clinical trial.
Currently there are no drugs approved for these conditions, apart from growth hormones to treat some aspects of Prader-Willi syndrome.
Daybue was launched by Neuren’s partner, Acadia Pharmaceuticals, in the US in April as the first treatment ever approved for Rett syndrome.
In North America, Neuren receives quarterly royalties, plus milestone payments of up to $US350m subject to achievement of annual net sales thresholds, plus a third of the market value of a Rare Paediatric Disease Priority Review Voucher when sold or used by Acadia.
At September 30, the cash balance for Neuren Pharmaceuticals was $230m.
For the six months to June, Neuren generated $62.9m of revenue from Daybue and $64.4m of total income, while its net profit was $47.8m.
The business operates in the sweet spot of a number of private equity firms such as Blackstone, which is targeting life sciences investments in a quest to capitalise on the growing demand for healthcare.
Also, because neurodevelopmental disorders are serious conditions with unmet needs, drugs being developed to treat them may qualify for favourable regulatory pathways intended to expedite the development and approval of therapeutically important drugs.
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