Newron Pharmaceuticals

SW: NWRN

CHF107.1m market cap

CHF6 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 14 European countries through commercial partner Zambon, in the US by sublicensee US WorldMeds and in July partner Valeo launched the drug in Canada. Newron will continue to participate in sale 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. Further preclinical/Phase I data are required before Newron can start the two Phase II/III studies for Evenamide (as an add-on to atypical antipsychotics for schizophrenia). As of 31 December 2018, Newron had net cash and short-term investments of €43.9m and can access an additional €40m in loan facilities from the European Investment Bank, the first tranche of which was drawn down in June.

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 19/07/2019
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 19/07/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (€m) 33.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (0.2) (33.4) (53.9)
Relative* (0.4) (36.3) (58.9)
52-week high/low CHF12.4/CHF5.4
*% relative to local index
Key management
Stefan Weber CEO
Marco Caremi Executive VP of Business Development