Newron Pharmaceuticals

SW: NWRN

CHF32.7m market cap

CHF1.83 last close

Newron Pharmaceuticals is CNS-focused. 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 has reported excellent, fast recruitment for the Phase II study of its novel schizophrenia drug, Evenamide, due to report in Q121. Newron notes that Phase III trials could start in Q221. It is progressing possible partnering deals on Evenamide. Discussions with Zambon on a Xadago dyskinesia study are moving forward. Newron had €39m cash at end June 2020 with cash well into 2022. Xadago royalties were up 14% at €2.5m vs €2.2m in H119. Our indicative value remains at CHF121m.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2018A 4.0 (14.9) (15.0) (84.20) N/A N/A
2019A 7.0 (20.7) (20.2) (113.24) N/A N/A
2020E 5.6 (13.8) (14.5) (81.09) N/A N/A
2021E 6.7 (19.6) (20.2) (113.13) N/A N/A
Industry outlook

Xadago is marketed in key territories as an add-on to levodopa therapy in PD is sold by Supernus Pharmaceuticals. This should benefit Newron since Supernus will have a five-fold larger sales team than the previous partner. The former lead product, sarizotan, ceased development in H120 after poor Phase III results.

Last updated on 20/10/2020
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Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (€m) 5.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (6.6) 17.3 (75.7)
Relative* (3.0) 21.1 (76.2)
52-week high/low CHF7.7/CHF1.3
*% relative to local index
Key management
Stefan Weber CEO
Marco Caremi Executive VP of Business Development

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