Last close As at 06/08/2026
CHF12.30
▲ 0.04 (0.33%)
Market capitalisation
CHF256m
Research: Healthcare
Newron has entered into a licence agreement with EA Pharma, a subsidiary of Eisai, to develop, manufacture and commercialise evenamide, Newron’s proprietary modulator of the excessive release of glutamate for the treatment of schizophrenia. The transaction covers Japan and other designated Asian territories, meeting management’s target of securing a deal in Q424. Newron will receive an upfront payment of €44m, up to €73m in contributions to development and milestones, and will be eligible to tiered royalties up to a double-digit percentage of net sales for evenamide in the covered regions. We expect the upfront payment to extend Newron’s operating cash runway, enabling it to maintain operations through 2026 at a minimum (versus through H125 previously). We place our estimates under review as we update our model to reflect the terms of the announcement.
Newron Pharmaceuticals |
Evenamide licence agreement in Japan |
Licensing transaction |
Pharma and biotech |
17 December 2024 |
Share price performance
Business description
Analysts
Newron Pharmaceuticals is a research client of Edison Investment Research Limited |
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Newron has entered into a licence agreement with EA Pharma, a subsidiary of Eisai, to develop, manufacture and commercialise evenamide, Newron’s proprietary modulator of the excessive release of glutamate for the treatment of schizophrenia. The transaction covers Japan and other designated Asian territories, meeting management’s target of securing a deal in Q424. Newron will receive an upfront payment of €44m, up to €73m in contributions to development and milestones, and will be eligible to tiered royalties up to a double-digit percentage of net sales for evenamide in the covered regions. We expect the upfront payment to extend Newron’s operating cash runway, enabling it to maintain operations through 2026 at a minimum (versus through H125 previously). We place our estimates under review as we update our model to reflect the terms of the announcement.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/22 |
6.09 |
(16.99) |
(0.95) |
0.0 |
N/A |
N/A |
12/23 |
9.06 |
(16.00) |
(0.90) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
As per the terms of the transaction, in addition to the upfront payments, Newron will also be eligible to receive up to €73m in additional payments from EA Pharma, including financial contributions to its upcoming Phase III one-year study to be performed outside of the licensed territories, as well as regulatory and commercialisation milestones. Newron reiterated its plans to start a Phase III trial in treatment-resistant schizophrenia (TRS) in H125, in line with our initial estimates.
Eisai has a well-recognised and established presence in neurology, notably known for its development and commercialisation on Leqembi for Alzheimer’s disease, and appears to be an ideal partner to optimise the development and the commercial trajectory for evenamide in the covered territories, in our view. We expect Eisai and EA Pharma to take a proactive role in running and funding any additional clinical trials (beyond the planned Phase III TRS study outside the covered territories discussed above) required for regulatory approval in Japan.
Evenamide has a robust track record in the clinic, offering durable responses and offering an innovative mechanism to treat schizophrenia, addressing a high unmet need despite the >40 treatments available to manage the condition. Historically, schizophrenia has been treated with typical (D2 receptor inhibitors) and atypical (target 5-HT2A receptors) antipsychotics and, while these can be effective for a portion of the schizophrenia population, they have limited efficacy in the majority of patients who are poor responders or treatment-resistant. Notably, the results of Newron’s study 015 (TRS) saw 25% of patients achieve remission, the first reported instance of remission, to our knowledge. More recently, the results from study 008A (poorly managed schizophrenia) confirmed the safety of evenamide as an adjuvant therapy, as well as its effectiveness in a randomised, placebo-controlled setting.
In addition to the positive validation from the partnership with EA Pharma, we also believe Newron is working on further developments for evenamide partnering in other regions, notably the US and Europe, which could further support Newron’s balance sheet with upfront payments and milestones, in addition to tiered royalties.
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Research: Healthcare
Following FDA approval in April 2024, Basilea has announced a much-anticipated partnership agreement with Innoviva Specialty Therapeutics for the commercialisation of Zevtera in the US. Deal terms include an upfront payment of US$4m, as well as tiered royalties on net sales in the high-teens to mid-20s percentage range. In addition, the company is eligible to receive up to US$223m in sales-related milestone payments. We view this as an important milestone and highly favourable transaction for Basilea, while offering an effective new medicine to combat Staphylococcus aureus bloodstream infections in the US. For now, we put our valuation on hold as we review our model and estimates.