Newron Pharmaceuticals — Evenamide set for a pivotal year

Newron Pharmaceuticals (SIX: NWRN)

Last close As at 18/05/2024

CHF10.44

0.18 (1.75%)

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Research: Healthcare

Newron Pharmaceuticals — Evenamide set for a pivotal year

Newron Pharmaceuticals has reported results for FY23, an active period for its lead asset, evenamide, being developed for treatment-resistant schizophrenia (TRS) and poorly managed schizophrenia (non-TRS). Strong 12-month data were shared in January 2024 from the Phase II trial (study 014/015) in TRS patients, and management is gearing up to launch a potentially pivotal Phase III trial. We expect the next major catalyst to be results of the Phase III trial (study 008A) in non-TRS patients, now anticipated in April. Improved liquidity following the recent equity raise and renegotiated debt repayment terms with the EIB provides headroom into 2025, by which time we anticipate a licensing deal for evenamide. We have revised our estimates, segregating evenamide’s potential across TRS and non-TRS populations, and refined some of our assumptions. Our valuation increases to CHF219.1m or CHF12.3/share (CHF7.7/share previously).

Soo Romanoff

Written by

Soo Romanoff

Managing Director - Head of Content, Healthcare

Healthcare

Newron Pharmaceuticals

Evenamide set for a pivotal year

FY23 results

Pharma and biotech

20 March 2024

Price

CHF7.86

Market cap

CHF140m

€1.03/CHF

Net debt (€m) at end-December 2023 (excluding €5.5m in initial proceeds from the March 2024 private placement)

34.4

Shares in issue (excluding initial 750k shares issued under the March 2024 private placement)

17.8m

Free float

95%

Code

NWRN

Primary exchange

SIX Swiss Exchange

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(6.7)

82.8

28.4

Rel (local)

(8.1)

76.0

17.7

52-week high/low

CHF10.4

CHF3.9

Business description

Newron Pharmaceuticals is focused on the central nervous system. Xadago for Parkinson’s disease is sold in Europe, Japan and the United States. Evenamide, a novel schizophrenia add-on therapy, is involved in a Phase III trial programme targeting schizophrenia.

Next events

Evenamide study 008A readouts

April 2024

Evenamide study 017 initiation

2024

Analysts

Soo Romanoff

+44 (0)20 3077 5700

Dr Arron Aatkar

+44 (0)20 3077 5700

Jyoti Prakash, CFA

+44 (0)20 3077 5700

Newron Pharmaceuticals is a research client of Edison Investment Research Limited

Newron Pharmaceuticals has reported results for FY23, an active period for its lead asset, evenamide, being developed for treatment-resistant schizophrenia (TRS) and poorly managed schizophrenia (non-TRS). Strong 12-month data were shared in January 2024 from the Phase II trial (study 014/015) in TRS patients, and management is gearing up to launch a potentially pivotal Phase III trial. We expect the next major catalyst to be results of the Phase III trial (study 008A) in non-TRS patients, now anticipated in April. Improved liquidity following the recent equity raise and renegotiated debt repayment terms with the EIB provides headroom into 2025, by which time we anticipate a licensing deal for evenamide. We have revised our estimates, segregating evenamide’s potential across TRS and non-TRS populations, and refined some of our assumptions. Our valuation increases to CHF219.1m or CHF12.3/share (CHF7.7/share previously).

Year end

Revenue
(€m)

PBT*
(€m)

EPS*
(€)

DPS
(€)

P/E
(x)

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

12/24e

24.33

(2.6)

(0.14)

0.0

N/A

N/A

12/25e

27.06

(0.8)

(0.04)

0.0

N/A

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Catalysts galore in 2024

We view 2024 to be a crucial year for evenamide, with top-line results from the potentially pivotal study 008A in non-TRS patients expected in April and the Phase III study in TRS (study 017) anticipated to launch this year. The 008A study is evaluating evenamide (30mg bid) in patients non-responsive to available antipsychotics, but not classed as having TRS, a group that constitutes c 40% of the schizophrenia patient population. The upcoming pivotal study 017 will evaluate patients with TRS (30% of the patient population) with potential backed by solid results (announced in January 2024) from the Phase II and extension studies 014/015. Should the 008A study data be positive, we expect the company to be able to sign a licensing agreement for evenamide by H224.

Improved financial flexibility after recent agreements

Newron ended the year with a gross cash and cash equivalent balance of €12.6m, which has been bolstered by the recently announced financing arrangement for up to €15m in funds through a private placement (c €5.5m initially received) with improved legroom provided by the amended debt repayment terms with the European Investment Bank (first repayment now due in November 2025, from June 2024 previously, albeit with increased servicing costs). We estimate the pro forma cash to be sufficient to fund operations into 2025, past the upcoming milestones.

Valuation: CHF219.1m or CHF12.3 per share

We have updated our estimates, segregating evenamide’s value across the two target schizophrenia subsets to provide greater visibility on the potential across the two sub-indications and account for the difference in expected time to market (2025 in non-TRS and 2027 in TRS). We also update our assumptions on corporate level expenses. Our valuation is now to CHF12.3/share (CHF7.7/share previously).

Active CNS pipeline focused on schizophrenia

Newron Pharmaceuticals is a biopharmaceutical company focused on conditions of the central nervous system (CNS) (see Exhibit 1). Xadago is the company’s first marketed product and is used as an adjuvant therapy for Parkinson’s disease. Royalties from Xadago (c €9m in FY23 versus c €6m in FY22) continue to dominate the company’s top-line revenues. Newron, alongside its partners Zambon and Supernus, has continued to work to protect the intellectual property rights for Xadago. After a settlement agreement with generic manufacturers (pursuant to an Abbreviated New Drug Application filed in 2021), the company continues to hold patent protection to Xadago until at least 1 December 2027. In Europe, supplementary protection certificates have been approved in most territories of relevance, with approvals in the remaining key territories expected in the near term.

Newron’s lead clinical-stage product is evenamide, a voltage-gated sodium channel inhibitor. Evenamide is in development for the treatment of schizophrenia, including both poorly managed schizophrenia and TRS.

Exhibit 1: Newron’s clinical pipeline

Source: Newron Pharmaceuticals website

Opportunity for novel treatments in schizophrenia

Schizophrenia treatments have not progressed much since the 1950s, which saw the approval of typical antipsychotics (designed as dopamine type 2 receptor antagonists, eg chlorpromazine, haloperidol, pimozide, loxapine). In the 1970s, these treatments were complemented by atypical antipsychotics (which target serotoninergic receptors 5-HT2A, eg clozapine, olanzapine, risperidone, quetiapine and are associated with fewer side effects). While these drugs have been effective for positive symptoms (hallucinations, delusions), they have limited efficacy against negative (affective flattening, anhedonia, avolition) and cognitive (deficits in memory, attention, learning, executive function) symptoms. As understanding of schizophrenia pathophysiology progresses, we believe the field is at the precipice of a new era of treatments, with significant opportunity for Newron to address the unmet need in this space, particularly with its programmes focused on both non-TRS and TRS sub-populations (see Exhibit 2). The schizophrenia treatment market was valued at c $7.4bn in 2023 and is projected by Research and Markets to be worth c $9.5bn by 2030 (a CAGR of 3.5%).

Exhibit 2: Newron is focused on both non-TRS and TRS

Source: Newron corporate presentation (February 2024)

Recent deals suggest the pace in CNS is picking up

With transactions in the biotech sector picking up in recent months, schizophrenia has been in the spotlight, evidenced with movements from big pharma in this space. Notably, in December 2023, AbbVie announced the acquisition of Cerevel in a deal worth $8.7bn. Importantly, this gives AbbVie access to Cerevel’s promising Phase II asset, emraclidine, which is being developed for the treatment of schizophrenia. Also in December 2023, another key transaction was Bristol Myers Squibb’s acquisition of Karuna Therapeutics for $330/share in cash (total equity value of $14bn or $12.7bn net of estimated cash acquired). At the centre of this deal was Karuna’s KarXT, which is the same class of therapeutic as emraclidine for the treatment of schizophrenia, albeit at a later stage of development. The FDA has set a Prescription Drug User Fee Act (PDUFA) goal date of 26 September 2024. In our view, these deals reflect the resurgence of interest in the field, which has been relatively stagnant since the 1950s.

Evenamide: Outlook for 2024

Non-TRS: Potentially pivotal study 008A

Newron’s most advanced clinical programme is focused on the development of evenamide for the treatment of poorly managed schizophrenia in patients already receiving antipsychotics, but who are not classed as having TRS. The potentially pivotal Phase III trial (study 008A) is a randomised, double-blind, placebo-controlled study to assess the safety, efficacy and tolerability of evenamide following a four-week 30mg bid treatment regimen (n=290). The primary endpoint is improvement in the Positive and Negative Syndrome Scale (PANSS) total score from baseline. Secondary endpoints include safety and tolerability, as well as other efficacy measures. In December 2023, the company announced that patient recruitment was complete, serving as a positive indicator that the trial is progressing as anticipated, in our view. Top-line results are due to be shared in April 2024. We believe this could be the next significant catalyst for investor attention, provided the data are positive.

TRS: Study 015 exceeded expectations, onto pivotal study 017

The latest clinical data for evenamide come from the Phase II trial (study 014 – six weeks, and study 015 – extension study). This was an open-label, rater-blinded, multi-centre (India, Italy and Sri Lanka) trial to assess the long-term efficacy, safety and tolerability of evenamide (7.5mg, 15mg and 30mg bid) in TRS patients as an add-on treatment (to any single antipsychotic drug excluding clozapine, the last approved drug for TRS, in 1989). While 161 patients were initially randomised, 153 completed the initial six weeks and 144 entered the extension study. 132 patients completed treatment up to six months and 121 patients completed 12 months.

In January 2024, Newron announced 12-month data from the extension study. The results showed a statistically significant improvement in PANSS mean percentage change from baseline, showing sustained benefit with evenamide treatment from six weeks, six months, through to the 12-month follow-up (see Exhibit 3). It was also noted that c 40% of patients showed a clinically meaningful result based on PANSS measurements at 12 months, defined as showing an improvement of ≥20%.

In addition, condition severity was investigated using Clinical Global Impressions (CGI) measures, which also showed statistically significant improvements versus baseline (see Exhibit 4). Importantly, the results showed a reduction in severity of the condition in over 70% of patients. Furthermore, Level of Functioning (LOF) was also investigated, and the data showed a statistically significant benefit, with over 60% of patients showing an improvement after 12 months.

Exhibit 3: PANSS mean percentage change from baseline (standard deviation in brackets)

Exhibit 4: CGI-S mean percentage change from baseline (standard deviation in brackets)

Source: Newron FY23 results presentation. Note: *p-value versus baseline < 0.001, paired t-test, Observed cases.

Source: Newron FY23 results presentation. Note: *p-value versus baseline < 0.001, paired t-test, Observed cases.

Exhibit 3: PANSS mean percentage change from baseline (standard deviation in brackets)

Source: Newron FY23 results presentation. Note: *p-value versus baseline < 0.001, paired t-test, Observed cases.

Exhibit 4: CGI-S mean percentage change from baseline (standard deviation in brackets)

Source: Newron FY23 results presentation. Note: *p-value versus baseline < 0.001, paired t-test, Observed cases.

In our view, these results are highly encouraging for evenamide as a potential adjuvant therapy for TRS patients. This was emphasised by the fact that c 50% of patients no longer met the protocol severity criteria for a diagnosis of TRS at 12 months. Moreover, c 25% of all patients were described as achieving remission, which, to our knowledge, has not yet been observed in this sub-population. On the safety front, evenamide in combination with antipsychotics was well-tolerated, with low incidence of treatment-emergent adverse dropouts. There were also no cases of patient relapses throughout the study treatment period.

Following these positive results, focus now shifts to study 017, a potentially pivotal Phase III trial in TRS. According to the company, and subject to final agreement by potential partners and regulatory bodies, this will involve ≥510 patients randomised (1:1:1) to receive either evenamide (15mg bid), evenamide (30mg bid) or placebo for 12 weeks (Exhibit 5). This will be a double-blinded trial to mitigate any potential biases in the assessment of patients. The primary efficacy measures (at 12 weeks) will be PANSS total change from baseline, with CGI-schizophrenia (CGI-S) change from baseline as a key secondary efficacy measure. An additional endpoint of PANSS total change from baseline will be assessed at 26 weeks, referred to as the maintenance efficacy measure. A further endpoint, also the PANSS total change from baseline, will be assessed at 52 weeks, referred to as the long-term efficacy measure. An open-label extension study will be conducted after one year, with patients from the initial portion of the Phase III study moving onto the extension arm as they complete treatment. We believe that the initiation of this trial (expected within 2024) will represent an important milestone for Newron and the clinical development of evenamide in TRS.

We note that Newron is currently in various discussions with potential partners; we expect an update from management on this front once the information becomes available. For a more detailed discussion of the study 015 results and outlook for evenamide in TRS, we direct readers to our January update note.

Exhibit 5: Design of the potentially pivotal Phase III trial in TRS (study 017)

Source: Newron FY23 results presentation

Financials

Newron currently generates all its revenues from its on-market drug Xadago (safinamide), being commercialised in collaboration with licensing partners Zambon and Supernus (commercial rights in the US). In FY23, the company generated revenues of €9.1m (up 48.6% y-o-y) primarily derived from Xadago-related royalty income and other payments from partners. This was broadly in line with our estimate of €8.9m. Xadago holds patent protection to December 2027, and we therefore expect a steady revenue stream from the drug to expiry. Total operating expenses grew 6.7% y-o-y to €20.7m, of which R&D expenses comprised 64% with the remainder attributed to general and administrative (G&A) expenses. G&A expenses continued to track in line with the recent trend (€7.5m vs €7.3m in FY22) and were similar to our estimate of €7.4m. R&D expenses increased 9.6% y-o-y to €13.2m (in line with our estimate of €13.4m) but was unsurprising given the ongoing late-stage clinical activity for evenamide. The overall reported operating loss improved to €11.6m from €13.3m in FY22 (our estimate was an €11.9m operating loss in FY23). The company reported a pre-tax loss of €16.2m in FY23, compared to €17.5m in FY22, which incorporated €4.2m of net interest expense in FY22 related to accrual of the outstanding €40m EIB loan interest.

As a reminder, Newron had signed an up to €40m financing facility with the EIB in October 2018, all of which was subsequently drawn down over 2019–21 across five tranches. Each tranche had an interest rate of 3% annually to be paid as arrears. An additional fixed rate (6.75%, 6.25% or 5.25% depending on the tranche) was also payable on expiry of the facility. As part of the agreement Newron issued a total of 807,169 warrants (201,793 warrants for the first tranche and 151,344 warrants each for the remaining four tranches) to the EIB, convertible at a price of €9.25/unit (currently out of the money) following the repayment of each loan tranche. At end FY23, principal plus accrued interest under the facility stood at €48m. Note that the repayment date for the first €10m tranche was previously set for June 2024, but following renegotiations with the EIB (announced in March 2024), maturity dates have been revised (refer to our note from more details), with tranche 1 now coming due only in November 2025. As part of the deal amendment, the interest rate for all traches has been increased to 9.75%. In addition, the EIB will be entitled to certain performance-based payouts – 1% of the fair value of the company for tranche 1 (latter of the maturity date or on request) and 0.75% for all other tranches. This additional payout has been capped at €7.5m. In addition, Newron has specified that the interest rate will rise by another 3% if the company is not able to meet a certain (undisclosed) milestone on or before 31 December 2024. While these revised terms come with higher servicing costs and future obligations for Newron, we believe that they meet the broader purpose of providing the company with greater financial flexibility in what is a crucial period for the company.

We have made some adjustments to our FY24 forecasts based on the FY23 results and operational visibility and have introduced FY25 estimates. Provided the 008A study results are positive, we now model the company signing a licensing deal in H224 (previously 2025), with a risk-adjusted upfront payment of €17.5m (€25m gross), which we now show as licensing revenue in FY24. Royalty payment estimates for Xadago have been kept broadly unchanged. Our FY24 estimate for total revenue is now €24.3m versus €6.8m previously. With the pivotal Phase III 017 study anticipated to commence within 2024, we expect R&D expenses to remain high at €14.4m (albeit lower than our previous projection of €18.5m) offset by the conclusion of the 008A study. We also tweak our G&A estimates slightly to €7.9m (€7.5m previously) reflecting the FY23 trend. Overall, we now project an operating profit of €2.0m in FY24 versus an operating loss of €19.2m previously. For FY25, we estimate an operating profit of €3.2m, reflecting inflows from milestone payments from its outlicensing partner. For our model, we assume a global licensing deal for evenamide in H224 with a total deal value of €650m (including development and commercial milestone payments) and an upfront payment of €25m. We also assume a tiered royalty rate of 12–15% based on certain sales targets. For reference, we present selected clinical-stage licensing deals in schizophrenia (with deal values) in Exhibit 6.

Exhibit 6: Historical licensing deals in schizophrenia (Phase II and III)

Deal date

Company

Product

Deal partner

Status on deal date

Upfront payment ($m)

Deal value

($m)

12/10/2022

Royalty Pharma

MK-8189

Merck & Co

Phase II

50

425

16/06/2020

Neurocrine Biosciences

TAK-831

Takeda

Phase II

120

2,015

20/06/2010

Cypress Bioscience

BL-1020

BioLineRx

Phase II

30

345

28/12/2005

AstraZeneca

TC-1734

Targacept

Phase II

10

300

20/10/2003

Pfizer

Saphris

Akzo Nobel

Phase III

100

370

29/06/2000

Forest Laboratories

Namenda

Merz

Phase III

10

55

Average

53

585

Source: EvaluatePharma

Newron exited FY23 with gross cash of €6.3m and liquid assets of another €6.3m (including corporate and government bonds and investment funds), which has been bolstered post-period by the receipt of c €5.5m in initial funds from a potential €15m private placement to an institutional investor (announced in March 2024). Based on our FY24 cash burn projections of €16.5m (excluding any potential inflows for a licensing deal for evenamide), we estimate the available capital to be sufficient to fund operations into FY25, even if a licensing deal does not materialise during the year. For our model (which assumes a licensing deal in H224 as stated above), we estimate the upfront, milestone and subsequent royalty payments will be sufficient to sustain operations without the need for additional external funding. Note that these estimates assume a 2026 launch of evenamide, which in the event of a delay may require the company to explore additional funding options to support its clinical pipeline. If Newron decides to develop and commercialise evenamide independently (or if a partnership deal does not happen), we estimate it will need c €30m in capital in 2025 (of which €9.5m may be available under the March 2024 private placement; the investor can subscribe for at its discretion after January 2025) and another €10m in 2026 before becoming self-sufficient. If this is achieved through equity capital, Newron will need to issue an additional c 5.1 million shares (at the current trading price of CHF7.86/share), which would dilute current shareholders by c 22% (shares outstanding would increase to 22.9 million).

Valuation

With the 008A study for evenamide approaching topline readouts and the 017-study expected to commence Phase III trials in Q224, we have revised our estimates to inject more granularity in the potential across both sub-indications in schizophrenia. We continue to value Newron on a risk-adjusted net present value (NPV) basis across its two assets, Xadago in Parkinson’s disease and evenamide in schizophrenia, but have now divided the market potential for the latter across the two sub-sets – non-responders/non-TRS and TRS. This also allows us to better reflect the different study completion and potentially launch timelines across the two programmes. For non-responders/non-TRS, we estimate the target population to be 40% of the overall schizophrenia population and factor in a conservative peak penetration rate of 5% (due to this being a more competitive market). For TRS, we assume the target patient population to be 30% of the overall schizophrenia population and model a higher peak penetration rate of 15%, given this patient subset remains underserved with limited treatment options. For non-responders/non-TRS we estimate a probability of success (PoS) of 70% and a launch date of 2026, while for TRS the PoS has been assigned at 60% with a potential launch timeline of 2027. Previously we were combining both target areas, assigning a PoS of 60% and a launch date of 2025. We assume an annual list price of $15,000 for evenamide, in line with the list price of the most recent third-generation antipsychotics.

In addition to this, we have refined certain assumptions related to corporate level expenses, primarily related to R&D costs not attributed to the two assets. Based on these revisions, forex updates, rolling our model forward and the latest year-end net debt position, our valuation for Newron revises upwards to CHF219.1m or CHF12.3share (from CHF137.4m or CHF7.7/share previously). Note that the revised valuation does not incorporate the initial €5.5m funds raised from the private placement or the commensurate share dilution. Adjusting for these would result in our valuation changing to CHF224.4m or CHF12.1/share.

Exhibit 7: Newron valuation breakdown

Product

Indication

Launch

Probability

rNPV
(CHFm)

NPV/share (CHF/share)

Xadago

Parkinson’s disease

2015

100%

26.8

1.5

Evenamide

Schizophrenia – non-responders/non-TRS

2026

70%

139.5

7.8

Evenamide

TRS

2027

60%

127.3

7.1

Total direct product value

 

 

 

293.6

16.5

 

Direct costs to 2033 less tax

(40.1)

(2.2)

Gross cash at end-December 2023

12.2

0.7

Loans (fair value December 2023)

(46.6)

(2.6)

Valuation

 

 

 

219.1

12.3

Source: Edison Investment Research

Exhibit 8: Financial summary

Accounts: IFRS, Yr end: December 31, €:000s

 

2021

2022

2023

2024e

2025e

PROFIT & LOSS

 

 

 

 

 

 

Total revenues

 

5,762

6,094

9,057

24,331

27,055

Cost of sales

 

0

0

0

0

0

Gross profit

 

5,762

6,094

9,057

24,331

27,055

Total operating expenses

 

(18,119)

(19,396)

(20,686)

(22,352)

(23,883)

Research and development expenses

 

(10,725)

(12,005)

(13,152)

(14,444)

(15,577)

SG&A

 

(7,394)

(7,391)

(7,534)

(7,909)

(8,306)

EBITDA (normalized)

 

(11,386)

(12,620)

(11,231)

2,134

3,294

Operating income (reported)

 

(12,357)

(13,302)

(11,629)

1,978

3,172

Finance income/(expense)

 

(2,527)

(4,170)

(4,571)

(4,578)

(3,973)

Exceptionals and adjustments

 

0

0

0

0

0

Profit before tax (reported)

 

(14,884)

(17,472)

(16,200)

(2,600)

(801)

Profit before tax (normalised)

 

(14,122)

(16,992)

(16,003)

(2,600)

(801)

Income tax expense (includes exceptionals)

 

(17)

(21)

(24)

0

0

Net income (reported)

 

(14,901)

(17,493)

(16,224)

(2,600)

(801)

Net income (normalised)

 

(14,139)

(17,013)

(16,027)

(2,600)

(801)

Basic average number of shares, m

 

17,845.0

17,845.0

17,845.0

18,407.5

18,595.0

Basic EPS (€)

 

(0.84)

(0.98)

(0.91)

(0.14)

(0.04)

Adjusted EPS (€)

 

(0.79)

(0.95)

(0.90)

(0.14)

(0.04)

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

 

 

 

Property, Plant and Equipment

 

87

72

53

39

29

Right of use assets (leases)

 

490

455

352

280

223

Intangible Assets

 

2

0

0

0

0

Non-current receivables (Tax credits)

 

10,480

8,175

5,809

2,990

1,470

Total non-current assets

 

11,059

8,702

6,214

3,309

1,721

Cash and equivalents

 

25,019

13,424

6,338

12,660

3,692

Current financial assets

 

9,575

9,350

6,261

6,261

6,261

Inventories

 

0

0

0

0

0

Trade Accounts Receivable

 

4,833

5,719

7,053

6,386

6,720

Total current assets

 

39,427

28,493

19,652

25,307

16,672

Trade Accounts Payable

 

3,504

4,869

6,106

6,036

6,678

Other Current Liabilities

 

150

172

543

543

543

Short-term Debt

 

0

0

22,277

22,277

12,277

Total current liabilities

 

3,654

5,041

28,926

28,856

19,498

Long-term Debt

 

42,542

45,165

25,753

25,753

25,753

Leasing Obligations

 

389

325

210

133

69

Share based liabilities

 

213

220

473

473

473

Long-term Provisions

 

581

474

412

412

412

Total non-current liabilities

 

43,725

46,184

26,848

26,771

26,707

Equity attributable to company

 

3,107

(14,030)

(29,908)

(27,010)

(27,811)

 

 

 

 

 

 

 

CASH FLOW STATEMENT

 

 

 

 

 

 

Pre-tax profit

 

(14,884)

(17,472)

(16,200)

(2,600)

(801)

Net Financial Income

 

(792)

(1,183)

(1,162)

10

6

Tax

 

0

0

0

0

0

Depreciation and amortisation

 

209

202

201

155

122

Share based payments

 

762

480

197

0

0

Other adjustments

 

3,524

4,996

5,311

2,819

1,520

Movements in working capital

 

(264)

1,885

1,513

597

308

Cash from operations (CFO)

 

(11,445)

(11,092)

(10,140)

982

1,156

Capex

 

(20)

(18)

(11)

(69)

(55)

Acquisitions & disposals net

 

0

0

0

0

0

Other investing activities

 

8,440

(299)

3,257

0

0

Cash used in investing activities (CFIA)

 

8,420

(317)

3,246

(69)

(55)

Loans received

 

15,000

0

0

0

0

Loan repayments

 

0

0

0

0

(10,000)

Equity issued

 

0

0

0

5,498

0

Other Financing Cash Flows (leases)

 

(169)

(186)

(192)

(88)

(70)

Cash from financing activities (CFF)

 

14,831

(186)

(192)

5,410

(10,070)

Cash and equivalents at beginning of period

 

13,213

25,019

13,424

6,338

12,660

Increase/(decrease) in cash and equivalents

 

11,806

(11,595)

(7,086)

6,322

(8,969)

Effect of FX on cash and equivalents

 

0

0

0

0

0

Cash and equivalents at end of period

 

25,019

13,424

6,338

12,660

3,692

Net (debt)/cash (including liquid resources)

 

(7,948)

(22,391)

(35,431)

(29,109)

(28,077)

Source: Company reports, Edison Investment Research


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United Kingdom

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This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by Newron Pharmaceuticals and prepared and issued by Edison, in consideration of a fee payable by Newron Pharmaceuticals. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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