Jefferies cuts PT, earnings forecasts on Australia's Neuren after setback for Rett drug in Europe

Jefferies trims PT and annual earnings forecasts for Neuren Pharmaceuticals NEU.AX after setback for Rett treatment drug application from European regulator

NEU on Tuesday said licensee Acadia Pharmaceuticals has reported that a committee of the European Medicines Agency issued a negative trend vote on its marketing-authorisation application for the trofinetide drug

Jefferies says following the latest setback, it now assumes EU trofinetide royalties will begin in Q4 rather than Q2, cutting NEU's FY26 NPAT forecast to A$48.1 million ($33.48 million) from A$58.2 million

Trims its price target to A$27 from A$27.75, maintains "buy" rating

Stock down 29.1% YTD as of last close

($1 = 1.4366 Australian dollars)