Newron Pharmaceuticals

SW: NWRN

CHF143.8m market cap

CHF8.06 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 and in the US by sublicensee US WorldMeds. Royalty income from sales of Xadago rose by 41% (to €4m) y-o-y in FY18. 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. Following positive data from a Phase II study of Evenamide, two Phase II/III studies are expected to initiate in Q219, investigating 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.

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 8.5 (30.3) (30.2) (169.43) N/A N/A
2020E 21.6 (8.7) (8.7) (48.58) N/A N/A
Last updated on 20/05/2019
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 20/05/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (€m) 31.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (10.5) (0.6) (34.9)
Relative* (10.6) (3.4) (39.3)
52-week high/low CHF13.6/CHF5.4
*% relative to local index
Key management
Stefan Weber CEO
Marco Caremi Executive VP of Business Development