Neuphoria Therapeutics secures milestone payment from Merck as Alzheimer’s clinical trial advances

Neuphoria Therapeutics Inc. (Nasdaq: NEUP), a late-stage biotechnology company focused on developing treatments for neuropsychiatric disorders, has announced that it will receive a $15 million milestone payment from Merck & Co., Inc. (known as MSD outside the United States and Canada). This payment was triggered following the initiation of a Phase 2 clinical trial for MK-1167, an investigational drug targeting the symptoms of Alzheimer’s disease dementia.

This development underscores the growing potential of Neuphoria’s partnership with Merck, reflecting significant progress in the biotechnology firm’s mission to advance innovative therapies for central nervous system (CNS) disorders. The milestone payment not only highlights the commercial and scientific value of Neuphoria’s research but also positions the company as a key player in the evolving landscape of Alzheimer’s disease treatment.

What Is the Significance of Neuphoria’s $15 Million Milestone Payment from Merck?

The $15 million milestone payment is a pivotal achievement for Neuphoria Therapeutics. This payment was triggered by the initiation of Merck’s Phase 2 clinical trial to evaluate the safety and efficacy of MK-1167, an α7 nicotinic acetylcholine receptor positive allosteric modulator (PAM), for treating cognitive symptoms associated with Alzheimer’s disease (ClinicalTrials.gov Identifier: NCT06721156).

This milestone represents the second key achievement in Neuphoria’s collaboration with Merck, underlining the progress of their joint efforts to develop novel CNS therapeutics. As part of the agreement, Neuphoria Therapeutics is eligible to receive up to $450 million in additional milestone payments, contingent upon the achievement of specific development and commercial objectives. The company will also earn royalties from the net sales of any products that reach the market under this partnership.

The milestone payment not only strengthens Neuphoria’s financial position but also validates its strategic focus on CNS disorders. It signals the potential of MK-1167 to address an urgent unmet need in the treatment of Alzheimer’s disease, a condition that affects millions globally and remains one of the most challenging neurodegenerative disorders to manage.

How Does MK-1167 Contribute to Alzheimer’s Disease Treatment?

MK-1167, the investigational compound at the heart of this milestone, is designed to modulate the α7 nicotinic acetylcholine receptor, a target known to play a critical role in cognitive processes. As a positive allosteric modulator (PAM), MK-1167 aims to enhance receptor activity, potentially improving cognitive functions in individuals with Alzheimer’s disease dementia.

The initiation of the Phase 2 clinical trial marks a significant step in evaluating MK-1167’s therapeutic potential. The study will focus on its safety profile, efficacy in reducing cognitive decline, and overall impact on patients’ quality of life. Given the limited treatment options currently available for Alzheimer’s, the development of a drug that can effectively slow cognitive deterioration could represent a major breakthrough.

Dr. Spyros Papapetropoulos, President and CEO of Neuphoria Therapeutics Inc., highlighted the importance of this milestone in a recent statement:

“This milestone reflects the strength of our collaboration with Merck and validates our unique ion channel targeting platform. The initiation of the Phase 2 trial is an important step in our journey to develop therapies that can address the complex needs of patients with neuropsychiatric disorders.”

Papapetropoulos emphasised that MK-1167 is part of a broader effort to explore innovative approaches to CNS disorders, leveraging Neuphoria’s expertise in ion channel modulation and neuropharmacology.

What Does Neuphoria’s Broader Pipeline Look Like Beyond Alzheimer’s?

While the recent milestone payment is tied to Alzheimer’s research, Neuphoria’s ambitions extend beyond this single indication. The company’s pipeline includes several promising candidates aimed at addressing various neuropsychiatric disorders, with a strong focus on anxiety, post-traumatic stress disorder (PTSD), and cognitive deficits.

Neuphoria’s lead drug candidate, BNC210, is an oral, selective negative allosteric modulator of the α7 nicotinic acetylcholine receptor. It is currently being developed for both acute treatment of social anxiety disorder (SAD) and chronic management of PTSD. Unlike traditional anti-anxiety medications, BNC210 is designed to provide rapid symptom relief without causing sedation, cognitive impairment, or addiction—issues often associated with benzodiazepines and other anxiolytics.

Additionally, Neuphoria’s pipeline includes next-generation α7 nicotinic acetylcholine receptor modulators and the Kv3.1/3.2 preclinical programs, both in the lead optimisation development stage. These programs reflect the company’s commitment to advancing therapies that target the underlying neurobiological mechanisms of psychiatric and cognitive disorders.

How Has Neuphoria’s Nasdaq Redomiciliation Impacted Its Growth Strategy?

In December 2024, Neuphoria completed its re-domiciliation from Australia to the United States, becoming the parent company of Bionomics Limited. This strategic move facilitated Neuphoria’s listing on the Nasdaq Stock Market under the ticker symbol “NEUP,” providing greater access to capital markets and enhancing the company’s visibility within the global biotech sector.

As part of this transition, Neuphoria issued new shares and options, aligning its corporate structure with its long-term growth strategy. This redomiciliation not only supports the company’s financial stability but also positions it to capitalise on emerging opportunities in the U.S. biotech ecosystem.

The Nasdaq listing has strengthened Neuphoria’s ability to attract institutional investors and strategic partners, which will be crucial as the company advances its clinical programs and pursues additional milestone achievements in collaboration with Merck.

What’s Next for Neuphoria Therapeutics?

With the $15 million milestone payment secured and the Phase 2 trial for MK-1167 underway, Neuphoria Therapeutics is well-positioned to continue its momentum in the field of Alzheimer’s disease treatment. The company’s robust pipeline, strategic partnerships, and Nasdaq presence create a solid foundation for future growth.

Neuphoria’s focus on neuropsychiatric disorder therapies reflects a broader industry trend toward addressing mental health and cognitive conditions with novel, targeted treatments. As clinical trials progress and new data emerges, the biotech community will be closely watching Neuphoria’s developments, particularly its potential to bring groundbreaking therapies to patients in need.