Total income of A$227.8 million in 2024 includes A$213.2 earned under the licence agreement with Acadia Pharmaceuticals. This comprised quarterly royalty income of A$56.2 million (2023: A$26.8 million), milestone revenue of A$80.5 million (2023: A$59.4 million) and A$76.5 million as Neuren’s one third share of the net proceeds of the Rare Disease Priority Review Voucher sold by Acadia. The milestone revenue for 2024 was earned on achievement of the first in a series of four thresholds of total annual net sales of DAYBUE, due to net sales for the year exceeding US$250 million, whilst the milestone payment for 2023 was for the first commercial sale of DAYBUE. Revenue for 2023 also included an upfront of A$145.7 million under the expanded global licence agreement with Acadia. Other income includes finance income of A$11.0 million (2023: A$5.7 million) and a gain of A$3.6 million on the fair value of outstanding forward contracts to sell Australian dollars and buy US dollars (2023: A$2.2 million loss). Research and development costs increased by A$6.2 million, due to higher expenditure relating to the NNZ-2591 Phase 2 clinical trials and the foundational work to prepare for Phase 3 development of NNZ-2591 across multiple indications. Corporate and administrative costs decreased by A$1.2 million, mainly due to bonuses paid in 2023 following the marketing authorisation of DAYBUE by the FDA. Income tax expense for 2024 was A$40.9 million (2023: A$48.1 million), reduced by the recognition of previously unrecognised New Zealand tax losses. The basic earnings per share for the year to 31 December 2024 was A$1.112 (2023: A$1.236) based on a weighted average number of shares outstanding of approximately 127.8 million (2023: 127.1 million). Total cash and short-term investments at 31 December 2024 were A$222.2 million (2023: A$228.5 million). As shown in the chart below, adjustments to include the receipt in Q1 2025 of the PRV sale proceeds, sales milestone payment and Q4 2024 royalty (all of which are included in 2024 income) and the payment in Q1 2025 of Q4 2024 tax, results in pro-forma cash and short-term investments of A$359.4 million2. 2024 $’m 2023 $’m Profit after tax adjusted to exclude FX translation impacts1 145.6 156.9 Gain/(loss) on revaluation of A$/US$ forward contracts 3.6 (2.2) Gain on translation to A$ functional currency n/a 2.4 Loss on translation to US$ functional currency (7.2) n/a Reported Profit after Tax 142.0 157.1 Gain on translation from US$ functional currency to A$ presentation currency 24.2 n/a Reported Total Comprehensive Income 166.2 157.1 A$/US$ exchange rate at 31 December 0.62 0.68 OPERATING REVIEW CONTINUED 1 This is a non-IFRS measure and is relevant to show comparable information for 2023 and 2024, due to the change in functional currency from Australian dollars to US dollars effective 1 January 2024. 2 This is a non-IFRS measure and is relevant to illustrate the expected cash and short-term investments position, due to the large proportion of 2024 revenue received in Q1 2025. * Includes US withholding tax on Q4 24 royalty and sales milestone payment. Record high cash reserve organically generated to fund growth 1 сссѵс цхѵф чпѵф рчѵц Ҋтчѵф тфшѵу .# / тр су ' . ($' ./*) у су -*4 '/4 у су / 3 + $ р сфҡ -*Ҋ!*-( .# .# ) -*Ҋ!*-( .# җ (ڦ Ҙ *Includes US withholding tax on Q4 24 royalty and sales milestone payment 2 Cash and Pro-forma Cash (A$m) Net cash used in operating activities was A$11.3 million compared with net cash generated of A$184.9 million for the year ended 31 December 2023. This is mainly due to the first sales milestone and sale of priority review voucher being earned in Q4 2024 and received in Q1 2025. Neuren made tax payments of A$37.2 million in 2024, which included A$34 million for 2023 tax, compared with nil payments made in 2023. Net cash used in financing activities for 31 December was A$8.8 million, comprising A$10.4 million of payments for the share buy-back, offset by A$1.7 million of proceeds received on conversion of loan funded shares and exercise of options. Neuren Pharmaceuticals Limited Annual Report 2024 13
RkJQdWJsaXNoZXIy MjE2NDg3