Neuren Pharmaceuticals (ASX:NEU) disclosed a new on-market share buy-back program with a period of up to 12 months, which will be conducted under section 65 of the New Zealand Companies Act 1993 and will not exceed 5% of the total shares on issue 12 months before the commencement of the buy-back, according to a Wednesday Australian bourse filing.

"The board views the current share price as materially undervaluing Neuren's assets, relative to internal analyses and the range of recently published analyst valuations," said Chair Patrick Davies.

Shares purchased under the buy-back will be cancelled upon acquisition, reducing the number of shares on issue, and the number of shares purchased under the buy-back will be less than the "10/12" limit prescribed in the Australian Corporations Act and will not require shareholder approval, the filing added.