Neuropharm shares spike on fresh deal buzz

Sometimes you don't even have to have an actual development pact to get investors revved up, as Neuropharm proved today. The UK biotech told investors that it's getting close to a deal for NPL-2008--its lead autism drug--and investors responded by pushing its stock up 45 percent.

A source told Reuters that Neuropharm is in talks with a "large cap neurology and psychiatry specialist."

"Following considerable interest in NPL-2008 from a number of parties, discussions have progressed well with a third party pharmaceutical company for a potential collaboration which would encompass the further development and commercialisation of NPL-2008," the company announced. "Neuropharm is therefore developing study designs for a second Phase III study, in conjunction with the partner. Neuropharm's intention would be to conduct a further Phase III study for NPL-2008 with a modified trial design, incorporating the important findings and insights from SOFIA, which will be funded through the collaboration. It is expected that a deal will be signed by the autumn of this year."

"If Neuropharm could secure a deal to fund NPL-2008's ongoing development and commercialization, this could provide significant upside to our forecasts and valuation," said Piper Jaffray in a note. Last February Neuropharm's shares tanked on the news that NPL-2008 had missed a primary endpoint.

- here Neuropharm's release
- read the story from AFX
- check out the report from Reuters

Suggested Articles

No biohazardous substances were in the room where the explosion happened, according to the Russian virology center.

Merck has a shot at becoming the first company to receive clearance to sell a vaccine against the virus in the U.S.

Acceleron has chalked up another phase 2 flop as its pipeline thins a little more.