Neuren’s Sales Forecast Despite Royalty Dip
Shares of Neuren Pharmaceuticals tumbled 7.6% to $18.57 after revealing modest royalty earnings of $11.6 million for the March quarter. Despite the dip, the company remains optimistic about its flagship product, Daybue, a treatment for the neurodegenerative disorder Rett Syndrome in children. Neuren projects 2024 royalty earnings to range from $61 million to $70 million. Moreover, the company anticipates a significant jump in Daybue’s total sales in the US, estimating a target between $370 million and $420 million for the year.
Aussie Broadband’s Strategic Move in Singapore
Aussie Broadband has secured a regulatory green light from Singapore’s Infocommunications Media Development Authority to hold up to a 19.9% stake in Superloop. This approval follows a contentious phase where Aussie Broadband, after an initial acquisition of nearly 20% in Superloop, had to reduce its share due to regulatory non-compliance. The subsequent legal battle underscores Aussie Broadband’s commitment to its expansion strategy despite Superloop’s resistance to the takeover. This development marks a significant regulatory win for Aussie Broadband in its international business strategy.
UBS Downgrades CBA Amidst Falling Loan Quality
UBS has issued a sell rating on Commonwealth Bank of Australia (CBA) shares following a 5% decrease in cash profit for the March quarter, which totaled $2.4 billion. The brokerage highlighted a noticeable deterioration in CBA’s asset quality, although it anticipates potential upgrades in consensus for the bank’s second half 2024 earnings due to today’s credit impairment charges. Despite these challenges, CBA is actively leveraging its distribution network to maintain and boost its mortgage business, a critical focus area for sustaining profitability amidst market shifts. UBS’s current valuation of CBA stands at $105, significantly below its market price of $119.74.
