Newron Pharmaceuticals

SW: NWRN

CHF120.5m market cap

CHF6.75 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 the company 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 Q120. Newron has requested a Type A meeting with the FDA prior to unblinding of the data. Newron has received FDA Rare Pediatric Disease Designation for Sarizotan. As of 30 June 2019, Newron had net cash and short-term investments of €29.9m. The second tranche of the European Investment Bank loan facility was drawn down in June, funding the company through near-term R&D inflections, and Newron can access an additional €22.5m from the EIB.

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 5.5 (23.5) (23.4) (131.11) N/A N/A
2020E 11.9 (15.2) (15.1) (84.81) N/A N/A
Industry outlook

The market for treating CNS disorders is substantial and growing. Xadago is approved and marketed in key territories as an add-on to levodopa therapy in Parkinson’s disease.

Last updated on 17/01/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (€m) 17.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 3.2 (3.6) (10.0)
Relative* 0.3 (11.0) (26.0)
52-week high/low CHF9.4/CHF5.5
*% relative to local index
Key management
Stefan Weber CEO
Marco Caremi Executive VP of Business Development