Last close As at 05/08/2026
CHF12.26
▲ 0.44 (3.72%)
Market capitalisation
CHF256m
Research: Healthcare
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.
Written by
Newron Pharmaceuticals |
Evenamide trial progressing well |
H120 results |
Pharma & biotech |
22 September 2020 |
Share price performance
Business description
Next events
Analysts
Newron Pharmaceuticals is a research client of Edison Investment Research Limited |
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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.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/18 |
4.03 |
(15.01) |
(0.84) |
0.0 |
N/A |
N/A |
12/19 |
7.04 |
(20.16) |
(1.13) |
0.0 |
N/A |
N/A |
12/20e |
5.59 |
(14.47) |
(0.81) |
0.0 |
N/A |
N/A |
12/21e |
6.67 |
(20.19) |
(1.13) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Evenamide potential move into pivotal trials in Q221
Newron is well underway with its four-week, 120-patient, placebo-controlled exploratory safety trial (Study 008) in patients with chronic schizophrenia who are taking an established therapy (NCT04461119). This aims to complete by late January 2021; 75 patients have been enrolled to date in the US and India, showing good progress. Newron then aims to start two pivotal studies in Q221. These comprise Study 003 in patients with inadequate, worsening response to anti-psychotic agents plus Study 004 in patients who are resistant to clozapine. Both trials need to be positive for approval. Clozapine is currently the most effective anti-psychotic agent but about 30–50% of patients become resistant, giving no further options. Newron is seeking a partner for the more general indication of inadequate response to current atypical anti-psychotic agents and plans direct marketing of Evenamide for the focused indication of clozapine-resistant adjuvant treatment.
Xadago’s further trial plus potential novel therapies
Xadago is a marketed product that faces competition from established generic products like rasagiline. Extending its indications into relief of levodopa-induced dyskinesia in Parkinson’s disease would add value. Newron wishes to run the study and will provide 50% of the funding (up to €10m) with the licensee, Zambon, funding the remainder. Agreement is said to be close and a trial could start in 2021 with possible approval from 2023. In April, the US sublicensee changed to Supernus; this may boost growth due to a larger salesforce. Newron is seeking to in-license novel products targeting the central and peripheral nervous systems.
Valuation: Funding to 2022
Newron had €39.4m cash in June, down from €39.2m in December 2019, and drew a further €7.5m EIB loan in April. Expenses reduced in H120 with a loss of €10.2m vs €14m in H119; this was due to completion of the Sarizotan trial in H219 and a €0.3m rise in Xadago royalties. There is cash and available funding well into 2022 and partnering would extend this. Our model indicates an unchanged value of about CHF121m (CHF6.8/share).
Exhibit 1: Financial summary
€000s |
2018 |
2019 |
2020e |
2021e |
||
Year-end 31 December |
IFRS |
IFRS |
IFRS |
IFRS |
||
PROFIT & LOSS |
||||||
Revenue |
|
|
4,025 |
7,038 |
5,590 |
6,669 |
Cost of Sales |
0 |
0 |
0 |
0 |
||
Gross Profit |
4,025 |
7,038 |
5,590 |
6,669 |
||
EBITDA |
|
|
(14,931) |
(20,707) |
(13,757) |
(19,593) |
Operating Profit (before amort. and except.) |
|
|
(14,967) |
(20,899) |
(13,963) |
(19,616) |
Intangible Amortisation |
(11) |
0 |
0 |
0 |
||
Exceptionals |
0 |
0 |
0 |
0 |
||
Other |
0 |
0 |
0 |
0 |
||
Operating Profit |
(14,978) |
(20,899) |
(13,963) |
(19,616) |
||
Net Interest |
(41) |
737 |
(507) |
(572) |
||
Profit Before Tax (norm) |
|
|
(15,008) |
(20,162) |
(14,470) |
(20,189) |
Profit Before Tax (reported) |
|
|
(15,019) |
(20,162) |
(14,470) |
(20,189) |
Tax |
(16) |
(45) |
0 |
0 |
||
Profit After Tax (norm) |
(15,024) |
(20,207) |
(14,470) |
(20,188) |
||
Profit After Tax (reported) |
(15,035) |
(20,207) |
(14,470) |
(20,189) |
||
Average Number of Shares Outstanding (m) |
17.8 |
17.8 |
17.8 |
17.8 |
||
EPS - normalised (c) |
|
|
(84.20) |
(113.24) |
(81.09) |
(113.13) |
EPS - (reported) (€) |
|
|
(0.84) |
(1.13) |
(0.81) |
(1.13) |
Dividend per share |
0.0 |
0.0 |
0.0 |
0.0 |
||
Gross Margin (%) |
100.0 |
100.0 |
100.0 |
100.0 |
||
EBITDA Margin (%) |
N/A |
N/A |
N/A |
N/A |
||
Operating Margin (before GW and except.) (%) |
N/A |
N/A |
N/A |
N/A |
||
BALANCE SHEET |
||||||
Fixed Assets |
|
|
487 |
342 |
342 |
332 |
Intangible Assets |
30 |
20 |
20 |
10 |
||
Tangible Assets |
106 |
116 |
116 |
116 |
||
Investments |
351 |
206 |
206 |
206 |
||
Current Assets |
|
|
59,512 |
59,946 |
49,912 |
40,674 |
Stocks |
0 |
0 |
0 |
0 |
||
Debtors |
15,659 |
20,783 |
19,783 |
19,783 |
||
Cash |
43,853 |
39,163 |
30,129 |
20,891 |
||
Other |
0 |
0 |
0 |
0 |
||
Current Liabilities |
|
|
(4,432) |
(5,595) |
(7,081) |
(8,081) |
Creditors |
(4,432) |
(5,595) |
(7,081) |
(8,081) |
||
Short term borrowings |
0 |
0 |
0 |
0 |
||
Long Term Liabilities |
|
|
(731) |
(17,895) |
(25,395) |
(40,395) |
Long term borrowings |
0 |
(16,749) |
(24,249) |
(39,249) |
||
Other long-term liabilities |
(731) |
(1,146) |
(1,146) |
(1,146) |
||
Net Assets |
|
|
54,836 |
36,798 |
17,778 |
(7,470) |
CASH FLOW |
||||||
Operating Cash Flow |
|
|
(15,954) |
(22,210) |
(16,484) |
(24,189) |
Net Interest |
(78) |
71 |
0 |
0 |
||
Tax |
0 |
0 |
0 |
0 |
||
Capex |
(40) |
(51) |
(50) |
(50) |
||
Acquisitions/disposals |
0 |
0 |
0 |
0 |
||
Financing |
51 |
0 |
7,500 |
15,000 |
||
Other |
3,002 |
16,619 |
0 |
0 |
||
Dividends |
0 |
0 |
0 |
0 |
||
Net Cash Flow |
(13,019) |
(5,571) |
(9,034) |
(9,239) |
||
Opening net debt/(cash) |
|
|
(60,081) |
(43,853) |
(22,414) |
(5,880) |
HP finance leases initiated |
0 |
0 |
0 |
0 |
||
Other |
(3,209) |
(15,868) |
(7,500) |
(15,000) |
||
Closing net debt/(cash) |
|
|
(43,853) |
(22,414) |
(5,880) |
18,358 |
Source: Company accounts, Edison Investment Research
|
|
Research: Energy & Resources
Hellenic Petroleum experienced a weaker Q220 due to record-low benchmark margins. As a consequence of the unprecedented impacts of COVID-19, demand for global crude oil and oil products collapsed. As lockdown measures were imposed across Europe, lower economic activity severely affected travel and tourism markets in countries like Greece. Despite the current headwinds the industry is facing, Hellenic maintained a strong operating performance and was capable of minimising the impacts of COVID-19. This was possible due to its storage capacity and the flexibility of its refining system. We have updated our estimates and valuation to reflect Q220 results and the impact of COVID-19. Our updated valuation is down 3% to €6.81/share.