Newron Pharmaceuticals

SW: NWRN

CHF46.4m market cap

CHF2.6 last close

Newron Pharmaceuticals is focused on the central nervous system. Xadago for Parkinson’s disease (PD) is sold in Europe, Japan and the US. Evenamide, a novel schizophrenia therapy, may start Phase III trials from Q221.

Investment summary

Newron is developing evenamide as an add-on to existing anti-psychotic therapies to treat poorly managed and refractory schizophrenia. Two recently completed safety studies, one in patients and the other in healthy volunteers respectively showed no brain or heart safety issues. The patient Phase II study did not show efficacy at the 7.5mg or 15mg bid doses requested by the FDA. Newron will now complete the requested safety work using the intended therapeutic dose of 30mg bid. This continuation study (008A) will take until H221 to complete. Our indicative value of CHF121m has been retained until Study 008A completes.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2019A 7.0 (18.6) (18.0) (101.0) N/A N/A
2020A 5.3 (16.4) (18.2) (109.0) N/A N/A
2021E 6.7 (16.7) (18.1) (101.0) N/A N/A
2022E 7.7 (25.8) (27.2) (153.0) N/A N/A
Industry outlook

Xadago is marketed in key territories as an add-on to levodopa therapy in PD. It is sold by Supernus Pharmaceuticals in the US. A further study on a dyskinesia indication will maximise the therapy’s potential. Newron wishes to run the study and will provide 50% of the funding (up to €10m) with Zambon, the licensee, funding the remainder. A trial could start in 2021, with possible approval from 2023.

Last updated on 13/04/2021
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Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (€m) 12
Forecast gearing ratio (%) 1399
Price performance
%
1m
3m
12m
Actual (9.9) 22.1 (49.8)
Relative* (12.6) 18.7 (57.6)
52-week high/low CHF6.5/CHF1.3
*% relative to local index
Key management
Stefan Weber CEO
Marco Caremi Executive VP of Business Development

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