Neuren Pharmaceuticals (ASX:NEU) unveiled a plan to initiate an on-market share buy-back program worth up to $50 million.
The move comes following the announcement by Neuren's licensee, Acadia Pharmaceuticals, of the sale of its rare pediatric disease priority review voucher for US$150 million ($231 million).
Neuren is entitled to one-third of the proceeds.
Acadia also reported a record net sale of DAYBUETM (trofinetide) amounting to US$91 million ($140.1 million) for the third quarter of 2024.
The growing and sustainable cash income from DAYBUE has prompted Neuren's board to allocate funds for the share buy-back, considering the capital needs for the advancement of NNZ-2591 and the current share price.
During the buy-back period, which can extend up to 12 months, Neuren will continually evaluate market conditions and operational performance.
The company may adjust the buy-back program as needed, in compliance with both the New Zealand Companies Act 1993 and Australian Corporations Act.
The share buy-back will not require shareholder approval and is expected to acquire up to 3,022,974 ordinary shares, approximately 2.4% of total shares.
Shares bought back will be cancelled upon acquisition, reducing the total number of shares on issue.
"This strategic initiative is part of our commitment to delivering sustained value to our shareholders," stated Jon Pilcher, CEO of Neuren Pharmaceuticals.
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.