Newron Pharmaceuticals

SW: NWRN

CHF104.4m market cap

CHF5.85 last close

Newron is a CNS-focused biotech. Xadago (partnered with Zambon, US WorldMeds, Meiji Seika, Sequirus) for PD has been launched in Europe and the US. Other pipeline assets include Sarizotan (Phase III for RS) and Evenamide (Phase II for schizophrenia).

Investment summary

Newron’s lead product, Xadago (safinamide) for Parkinson’s disease (PD) has been launched in 18 countries through partners and Newron will continue to participate in sales through royalty income. The pivotal Phase II/III trial (STARS), investigating sarizotan for awake breathing disorders associated with Rett syndrome, is expected to report top-line data in Q419 and could enable regulatory fillings during 2020. As of 30 June 2019, Newron had net cash and short-term investments of €29.9m. The first €10m tranche of the European Investment Bank loan facility was drawn down in June and Newron can access an additional €30m funding it through near-term R&D inflections. We have placed our financial forecasts under review.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 13.4 (4.3) (5.3) (32.32) N/A N/A
2018A 4.0 (14.9) (15.0) (84.20) N/A N/A
2019E 8.6 (14.3) (14.2) (79.39) N/A N/A
2020E 21.7 (3.6) (3.5) (19.80) N/A N/A
Last updated on 19/09/2019
Industry outlook

The market for treating CNS disorders is substantial and growing. Xadago has a unique position as an add-on to levodopa therapy in Parkinson’s disease, with its once-a-day dosing and a clean safety profile.

Last updated on 19/09/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (€m) 33.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (4.7) (4.4) (38.1)
Relative* (7.0) (5.4) (45.0)
52-week high/low CHF9.4/CHF5.4
*% relative to local index
Key management
Stefan Weber CEO
Marco Caremi Executive VP of Business Development