- Neuren has reported over US$87 million in sales of DAYBUE in Q4 of 2023
- The drug is sold by NASDAQ-listed Acadia in the US to treat a condition called Retts
- Earlier this month, short sellers claimed Acadia was lying to the market about the drug’s efficacy – Acadia bought DAYBUE off Neuren in 2018
- The drug allegedly makes some childrens’ lives worse
Neuren (ASX:NEU) shares were down 12 per cent out the gate this morning per CBOE live pricing, even as the stock flagged US$87.1 million in sales of its flagship drug DAYBUE in Q4 of 2023.
The seemingly strong numbers are buried within a larger context at the moment, which regular readers may recall.
Earlier this month, Neuren shares tanked when it was revealed a US-based short selling firm, Culper Research, had issued a report alleging dishonest reporting from Neuren partner Acadia.
The ultimate charge put forward by the report is that the drug, DAYBUE, is unsafe.
The report even went so far as to include commentary from parents who perceived it had made their childrens’ lives worse, and, alleged that 1-in-10 who use it are hospitalised.
Culper also called DAYBUE a “total flop.”
Acadia is a company listed on the NASDAQ which bought the rights to DAYBUE off Neuren back in 2018.
The drug is meant to treat Retts Syndrome, a neurodegenerative condition mainly affecting children.
While Neuren tanked on the news, it was quick to recover its losses, with 1 year gains still reflecting near 200 per cent returns at market open on Wednesday.
However, investors today have been apparently put off by the briefness of Neuren’s announcement; the fact forecast royalties to Neuren are on the whole rather low, and most likely, some nervousness around the Culper report.
Neuren had earlier put out a response to the allegations in the report which appeared to have calmed the market. Maybe not as much as it had thought.