Neuren Pharmaceuticals Shares Soar as Daybue Sales Surge and Royalty Guidance Jumps on US$35 Million Milestone

Shares of Neuren Pharmaceuticals Ltd. jumped nearly 17% on Thursday after the biotech company lifted its full-year income guidance on the back of strong U.S. sales of its Rett syndrome drug and a major milestone payment from its commercial partner.

Neuren shares rose A$3.33, or 16.84%, to close at A$23.11, after trading between A$20.98 and A$23.30. About 969,000 shares changed hands, more than double recent daily volumes, valuing the company at roughly A$2.9 billion.

The stock is now near the top of its 52-week trading range. Neuren's 52-week range runs from A$10.92 to A$23.59.

Guidance upgrade

Neuren announced Thursday a significant upgrade to its full-year 2026 income guidance for trofinetide, driven by robust third-quarter net sales of Daybue and a key milestone payment. The company said it secured a US$35 million milestone payment from its partner Acadia.

The sales numbers were strong. Acadia Pharmaceuticals reported third-quarter Daybue net sales of US$140 million, up 39% from a year earlier and 12% from the second quarter, driven mainly by strong uptake of Daybue Stix.

That flowed directly into Neuren's royalties. Neuren's third-quarter royalty income reached US$16.4 million, up 51% from a year earlier, and the company raised its expected full-year 2026 royalty income to US$56 million to US$58 million.

The new range is well above the prior outlook. Neuren's previous 2026 royalty income guidance was between US$52.6 million and US$56.2 million.

Patent protection extended

The company also strengthened its intellectual property position. Neuren highlighted the allowance of a new U.S. patent covering weight-banded dosing of trofinetide, extending protection until March 2041.

How Neuren makes money

Neuren does not sell the drug itself. The company's value rests mainly on royalties from trofinetide, sold in the United States as Daybue by its licensing partner, Acadia Pharmaceuticals.

The treatment fills a major gap in care. Daybue is used to treat Rett syndrome in adults and children two years of age and older. Rett syndrome is a rare genetic neurological disorder that mostly affects girls.

European expansion

Neuren's partner is now pushing into new markets. The European Commission granted marketing authorization for Daybue in August.

The broader pipeline is also advancing. Neuren's other product, NNZ-2591, is an investigational medicine in a Phase III clinical trial for Phelan-McDermid syndrome. On Nov. 2, the company said the U.S. Food and Drug Administration granted Orphan Drug Designation for NNZ-2591 to treat hypoxic-ischemic encephalopathy.

Dividends and momentum

Rising royalties have allowed Neuren to begin rewarding shareholders. The company paid its first-ever interim dividend of 15 cents a share in October, as part of what it described as a dividend program anchored by growing royalties.

The stock had been building momentum before Thursday's announcement. Neuren shares rose 6.3% on Oct. 29 to close at A$20.14 as investors looked ahead to potential milestone payments, Daybue sales growth, European expansion and Japanese trial results for trofinetide.

Analyst views

Analysts had already seen upside before the upgrade. The analyst consensus target price for Neuren shares is A$25.78.

Investors will now watch the pace of Daybue's European rollout, the Japanese trial readout for trofinetide and progress on NNZ-2591, while monitoring how the company uses its growing cash pile.