Neuphoria receives $15M milestone payment from Merck

Published 12/02/2025, 13:10
Neuphoria receives $15M milestone payment from Merck

BURLINGTON, Mass. - Neuphoria Therapeutics Inc. (NASDAQ:NEUP), a biotechnology firm focused on neuropsychiatric treatments with a market capitalization of $7.27 million, is set to receive a $15 million payment from pharmaceutical giant Merck (NSE:PROR). This payment is linked to the start of a Phase 2 clinical trial evaluating MK-1167, a drug aimed at treating Alzheimer’s disease symptoms. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt.

The trial, which investigates the safety and efficacy of MK-1167, a positive allosteric modulator of the α7 nicotinic acetylcholine receptor, marks the latest development in the partnership between Neuphoria and Merck. "The initiation of the Phase 2 trial validates our past joint discovery research efforts," said Dr. Spyros Papapetropoulos, President and CEO of Neuphoria. With the stock currently trading below its InvestingPro Fair Value, analysts have set an ambitious target price of $21 per share.

This milestone payment is part of a larger agreement that could see Neuphoria receiving up to $450 million in additional payments based on the progression of multiple drug candidates, plus royalties on the sales of any licensed medicines. Get deeper insights into Neuphoria’s financial health and 8 additional key ProTips with an InvestingPro subscription.

Neuphoria’s pipeline includes BNC210, a drug candidate for the treatment of social anxiety disorder and post-traumatic stress disorder, and other early-stage clinical trial drugs for cognitive deficits in Alzheimer’s and central nervous system conditions. The company also has preclinical programs targeting the α7 nicotinic acetylcholine receptor and Kv3.1/3.2 ion channels.

The information in this article is based on a press release statement from Neuphoria Therapeutics Inc. and does not include any speculative content about the potential impact or future results of the clinical trials or the financial arrangements between Neuphoria and Merck.

In other recent news, Neuphoria Therapeutics Inc. has regained compliance with the Nasdaq’s Minimum Bid Price Requirement. The pharmaceutical firm managed to maintain a closing bid price of at least $1.00 per share for ten consecutive business days, a significant milestone following a previous warning that the company had fallen below the required minimum bid price. The re-domiciliation of the company from Australia to Delaware appears to have been a key step in restoring compliance.

These developments are part of recent events surrounding Neuphoria Therapeutics. The resolution of the compliance issue is vital for the company’s continued presence on the exchange, as per the company’s statement. However, Neuphoria Therapeutics included forward-looking statements in their report, highlighting potential risks and uncertainties that could affect their ability to maintain their Nasdaq listing in the future.

Investors and stakeholders should take note of the company’s compliance status and the inherent uncertainties that come with forward-looking statements. For additional insight into Neuphoria Therapeutics’ financial health and market standing, the company’s filings with the Securities and Exchange Commission can be consulted.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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