##{"id":60553,"date":"2012-09-11T10:59:34","date_gmt":"2012-09-11T00:59:34","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/09\/11\/neuren-adds-parkinsons-to-future-potential\/"},"modified":"2012-09-11T10:59:34","modified_gmt":"2012-09-11T00:59:34","slug":"neuren-adds-parkinsons-to-future-potential","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/09\/11\/neuren-adds-parkinsons-to-future-potential\/","title":{"rendered":"Neuren Adds Parkinson’s To Future Potential"},"content":{"rendered":"

\n\t – Neuren<\/span> developing compound for Parkinson's Disease patients
\n\t – NNZ-2591<\/span> showing promise in treating both dementia and movement
\n\t – Parkinson's is a significant market opportunity
\n\t – Drug adds to Neuren's<\/span> attractive development pipeline
\n\t – Bell Potter reiterates Buy rating<\/strong><\/p>\n

\n\tBy Chris Shaw<\/p>\n

\n\tNeuren<\/span> Pharmaceuticals ((NEU<\/span>)) previously attracted the attention of Bell Potter given the potential of the company's NNZ-2566<\/span> drug for treating Traumatic Brain Injury and for Autism Spectrum Disorders (see: Neuren<\/span> Story Getting Better, FNArena<\/span>, 25\/5\/12). <\/p>\n

\n\tBell Potter now sees another reason why the Neuren<\/span> story is attractive, as the group's pre-clinical NNZ-2591<\/span> drug is showing promise in the treatment of Parkinson's Disease. The drug is a Glypromate-derived<\/span> dipeptide<\/span>, where Glycine<\/span> and Proline<\/span> are formed into a diketopiperazine<\/span> (DKP<\/span>).<\/p>\n

\n\tOver the past 10 years Neuren's<\/span> research has shown NNZ-2591<\/span> works in animal models of Parkinson's, is 100% orally-available and appears to have a clean safety profile. Additional studies have shown some success in addressing mild cognitive impairment, which implies the drug could be used to treat dementia in Parkinson's patients.<\/p>\n

\n\tThis is significant, as Bell Potter notes possibly 20-30% of patients with Parkinson's Disease develop dementia. At present only the Exelon drug of Novartis treats Parkinson's dementia, so given NNZ-2591<\/span> appears able to address both dementia and movement, it could become the first drug for Parkinson's patients to address both disease states.<\/p>\n

\n\tGiven around 900,000 Americans are estimates to have Parkinson's Disease and the disease impacts on 7-10 million people worldwide, Bell Potter sees a potential multi-billion dollar global market. Another attraction is a Parkinson's dementia drug could be very cost effective as at least one study has shown Parkinson's patients with dementia cost the healthcare system three times as much as non-demented patients.<\/p>\n

\n\tOne advantage of Neuren with respect to NNZ-2591, notes Bell Potter, is Parkinson's is not featured heavily in the late stage pipelines of Big Pharma companies. This opens up potential for Neuren with respect to partnering deals.<\/p>\n

\n\tGiven the early stage of work on NNZ-2591, none of the potential upside is factored into Bell Potter's valuation of Neuren. Valuation stands at $0.17 on a base-case basis and $0.21 on more optimistic assumptions.<\/p>\n

\n\tThe medium-term key for Neuren remains NNZ-2566, which continues to show promise in testing. Success in clinical trials for oral NNZ-2566 are likely to strengthen Neuren's value proposition in Bell Potter's view. This would also improve the attractiveness of the drug to potential licensees.<\/p>\n

\n\tAs current NNZ-2566 Phase II trials come to a close, a licensing deal becomes more likely. This, suspects Bell Potter, would trigger a significant re-rating for the stock. The next catalyst is likely to be a filing for an oral NNZ-2566 Phase II trial for treating Rett Syndrome, a type of Autism Spectrum Disorder, in October. Results from a recent Phase I trial are due in coming weeks. <\/p>\n

\n\tTraumatic Brain Injury trials for NNZ-2566 continue, with Bell Potter expecting completion of the current trial by the middle of next year. The US government is funding the Phase II trial for NNZ-2566 in treating Traumatic Brain Injury.<\/p>\n

\n\tA Phase II trial of Motiva,which targets post stroke apathy, is also continuing and is fully funded via a grant. Bell Potter also sees a large market opportunity for Motiva given a high number of stroke survivors suffer from Apathy Syndrome.<\/p>\n

\n\tWith a price target set in line with its base case valuation of $0.17, Bell Potter continues to see significant upside in Neuren. This means no change to the broker's Buy rating. With a market capitalisation of just over $25 million there is not a lot of coverage of Neuren, as none of the brokers in the FNArena database provide coverage on the company.<\/p>\n

\n\tIn a weaker overall market shares in Neuren today are up slightly, trading 0.1c higher at 2.4c as at 10.25am. This compares to a range over the past year of 1.4c to 3.7c. <\/p>\n

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\n\tFind out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"