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Investing.com -- Neuphoria Therapeutics Inc. (NASDAQ:NEUP) stock soared over 20% following the announcement that the company will receive a $15 million milestone payment from Merck (NSE:PROR). The payment comes as a result of the initiation of a Phase 2 clinical trial for MK-1167, aimed at treating Alzheimer’s disease symptoms.
The biotechnology firm, specializing in neuropsychiatric disorders, stated that this payment validates their collaborative research with Merck and their unique ion channel targeting platform. This platform has produced several small molecule candidates now in various stages of clinical and preclinical development. The initiation of the Phase 2 trial by Merck marks a significant step forward for Neuphoria’s therapeutic efforts and for potential treatments for people with neuropsychiatric disorders.
President and CEO of Neuphoria, Spyros Papapetropoulos, M.D., Ph.D., expressed enthusiasm over the progress, indicating that the milestone underscores the potential of α7 nicotinic acetylcholine receptor targeted therapeutics. "We are excited to see this latest progress in our long-standing collaboration with Merck. The initiation of the Phase 2 trial validates our past joint discovery research efforts and Neuphoria’s unique ion channel targeting platform that has generated several small molecule candidates currently in clinical and preclinical stages of development," Papapetropoulos said.
The $15 million payment is the second milestone achieved in Neuphoria’s collaboration with Merck. According to the agreement terms, Neuphoria could receive up to $450 million in additional milestone payments based on the development and commercial success of multiple candidates, plus royalties on the net sales of any licensed medicines.
Investors responded positively to the news, reflecting confidence in Neuphoria’s partnership with Merck and the potential financial benefits from future milestones and royalties. The deal not only brings immediate financial gain to Neuphoria but also enhances the company’s credibility and prospects in the competitive biotech industry, especially in the field of treatments for neuropsychiatric conditions.
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