Neuren Pharmaceuticals released its financial results for the half-year ended June 30, showing a notable decline in both revenue and profit.
The company's revenue fell 50% to $32.1 million, down from $64.4 million in the previous period.
Net profit after tax also decreased sharply by 83% to $8 million from $47.8 million in the corresponding half-year in 2023.
The reduction in profit is primarily attributed to lower milestone revenue.
Milestone revenue from the first commercial sale of DAYBUE contributed $59.4 million in the half-year to June 30, 2023, in contrast to none in the current period.
However, royalty revenue from Acadia increased dramatically to $24.3 million from $3.5 million.
"While the milestone revenue variance significantly impacted our year-on-year comparison, we remain positive about the future with expected milestone revenue of $77 million in the second half of 2024," stated Patrick Davies, non-executive chair of Neuren Pharmaceuticals.
Neuren reported an increase in research and development expenses to $17.9 million, largely due to the advancement of clinical trials for their second drug, NNZ-2591.
Corporate and administrative costs saw a minor decrease of $700,000 for the same period.Despite the financial challenges, Neuren continues to focus on its pipeline of neurodevelopmental disorder treatments, with anticipated royalty and milestone payments in the latter part of 2024.
Neuren Pharmaceuticals is a biopharmaceutical company developing therapies for neurodevelopmental disorders.
The company is developing new drug therapies to treat multiple serious neurological disorders that emerge in early childhood and have no or limited approved treatment options.
At the time of reporting, Neuren Pharmaceutical’s share price was $15.83.