NEU (Neuren Pharmaceuticals Ltd) vs S&P/ASX 300 Comparison

NEU

S&P/ASX 300

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NEU

S&P/ASX 300

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NEU

S&P/ASX 300

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P/ASX 300

NEU

LLY

DPH

NOVO B

JNJ

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Neuren Pharmaceuticals Ltd
Glance View

Market Cap

1.5B AUD

Industry

Pharmaceuticals

Founded in 1993, Neuren Pharmaceuticals Ltd has carved a niche for itself within the biotech industry, focusing primarily on neurological and neurodevelopmental disorders. The company operates at the intriguing intersection of innovation and medicine, where the stakes are high, but so are the potential rewards. Neuren has its headquarters in Australia and has oriented its research towards developing therapies that could change the lives of those affected by conditions like Rett syndrome and Fragile X syndrome. By adopting a strategic approach that combines cutting-edge science with a relentless focus on unmet needs, Neuren positions itself uniquely through its proprietary compounds such as trofinetide and NNZ-2591, which are at the core of its research endeavors. The company's business model hinges on a dual approach: developing its own drugs while simultaneously fostering partnerships with larger pharmaceutical companies to bring these therapies to market. This model allows Neuren to share the substantial costs and risks inherent in drug development while benefiting from the expanse of its partners' distribution networks and market insights. Revenue generation kicks in primarily through milestone payments, royalties, and licensing agreements as these partners help navigate the rigorous phases of clinical trials and regulatory approvals. Financial stability is thus intricately tied to clinical successes and strategic alliances, allowing Neuren to balance the speculative nature of biotech investments with the promise of transformative medical breakthroughs.

View NEU Analysis

NEU Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

JP	N	Nichi-Iko Pharmaceutical Co Ltd TSE:4541	Add
US		Eli Lilly and Co NYSE:LLY	Add
UK		Dechra Pharmaceuticals PLC LSE:DPH	Add
DK		Novo Nordisk A/S CSE:NOVO B	Add
US		Johnson & Johnson NYSE:JNJ	Add
US		Merck & Co Inc NYSE:MRK	Add
CH		Roche Holding AG SIX:ROG	Add
UK		AstraZeneca PLC LSE:AZN	Add
CH		Novartis AG SIX:NOVN	Add
US		Pfizer Inc NYSE:PFE	Add

JP	N	Nichi-Iko Pharmaceutical Co Ltd TSE:4541	Select
US		Eli Lilly and Co NYSE:LLY	Select
UK		Dechra Pharmaceuticals PLC LSE:DPH	Select
DK		Novo Nordisk A/S CSE:NOVO B	Select
US		Johnson & Johnson NYSE:JNJ	Select
US		Merck & Co Inc NYSE:MRK	Select
CH		Roche Holding AG SIX:ROG	Select
UK		AstraZeneca PLC LSE:AZN	Select
CH		Novartis AG SIX:NOVN	Select
US		Pfizer Inc NYSE:PFE	Select

JP	N	Nichi-Iko Pharmaceutical Co Ltd TSE:4541	Add
US		Eli Lilly and Co NYSE:LLY	Add
UK		Dechra Pharmaceuticals PLC LSE:DPH	Add
DK		Novo Nordisk A/S CSE:NOVO B	Add
US		Johnson & Johnson NYSE:JNJ	Add
US		Merck & Co Inc NYSE:MRK	Add
CH		Roche Holding AG SIX:ROG	Add
UK		AstraZeneca PLC LSE:AZN	Add
CH		Novartis AG SIX:NOVN	Add
US		Pfizer Inc NYSE:PFE	Add

CA	A	Advance Lithium Corp XTSX:AALI	Add
US	G	GE Vernova LLC NYSE:GEV	Add
NL	N	Nepi Rockcastle NV JSE:NRP	Add
US		Schlumberger NV NYSE:SLB	Add
US	B	Baker Hughes Co NASDAQ:BKR	Add
ID		Amman Mineral Internasional Tbk PT IDX:AMMN	Add
US	R	Reddit Inc NYSE:RDDT	Add
CH	G	Galderma Group AG SIX:GALD	Add
US		Halliburton Co NYSE:HAL	Add
IN		Jio Financial Services Ltd NSE:JIOFIN	Add

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NEU

vs

S&P/ASX 300

Stocks Performance
NEU vs S&P/ASX 300

Performance Gap
NEU vs S&P/ASX 300

Performance By Year
NEU vs S&P/ASX 300

Competitors Performance
Neuren Pharmaceuticals Ltd vs Peers

Neuren Pharmaceuticals Ltd
Glance View

Company

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NEU vs S&P/ASX 300

Stocks Performance NEU vs S&P/ASX 300

Performance Gap NEU vs S&P/ASX 300

Performance By Year NEU vs S&P/ASX 300

Competitors Performance Neuren Pharmaceuticals Ltd vs Peers

Neuren Pharmaceuticals Ltd Glance View

Company

Help

Tools

Stocks

NEU

vs

S&P/ASX 300

Stocks Performance
NEU vs S&P/ASX 300

Performance Gap
NEU vs S&P/ASX 300

Performance By Year
NEU vs S&P/ASX 300

Competitors Performance
Neuren Pharmaceuticals Ltd vs Peers

Neuren Pharmaceuticals Ltd
Glance View