Drug firm eyes market worth billions

A drug being developed by Auckland-based Neuren Pharmaceuticals could prevent memory loss in a market worth billions, the company says.

Scientist Professor Peter Gluckman, from the ASX-listed firm, said Neuren's NNZ-2591 stopped memory loss when tested on rats with the equivalent of severe Alzheimer's.

The drug could be supplied as a pill, was easy to make, had a good patent position and was safe according to informal toxicology tests, Gluckman said.

Neuren said the global market for treating Alzheimer's was expected to exceed US$3 billion ($4.5 billion) by 2009.

Previous tests of the drug on rats with Parkinson's symptoms also showed they had an improved ability to walk lasting many weeks.

Parkinson's mobility treatment costs about US$2.4 billion globally, and the market for Parkinson's dementia is in excess of US$1 billion.

Neuren chief executive David Clarke said making a drug which could treat both impaired movement and dementia would be a competitive advantage.

"So this drug affects the motor effects of Parkinson's, it affects dementia and therefore you combine the two [and] then you have got a very powerful drug."

The drug also showed improvement in age-related memory loss.

Apart from better recognition and memory, the histology (analysis of brain cells) showed improved connections between neurons, the company said. However, it could take another six to seven years for NNZ-2591 to reach the market.

Last month Neuren issued 15 million shares at A40c, raising A$6 million. The company is also planning a share purchase plan to shareholders to raise up to another A$1.5 million.

It wants to get an out-licensing and co-development programme under way from early next year.

Memory money

* Neuren's drug stopped memory loss when tested on rats with the equivalent of Alzheimer's.

* It's hoped the drug, NNZ-2591, could help the company tap into a market worth billions.