Last close As at 05/08/2026
CHF12.26
▲ 0.44 (3.72%)
Market capitalisation
CHF256m
Research: Healthcare
Newron is focused on the development of its novel schizophrenia drug, Evenamide. Evenamide is in a 120-patient Phase II study, due to report in Q121. Newron notes that two pivotal Phase III trials could start in Q221. It is progressing possible partnering deals. It also has a marketed product for Parkinson’s disease, Xadago, sold via Zambon in Europe and by Supernus in the US. Xadago H120 royalties were up 14% at €2.5m. Discussions with Zambon to expand the Xadago indication by co-funding a study in Parkinson’s dyskinesia are in progress. Newron has cash and loan facilities to fund it into 2022. Our indicative value is CHF121m.
Written by
Newron Pharmaceuticals |
Schizophrenia development adds value
|
Healthcare |
Deutsches Eigenkapitalforum 2020
17 November 2020 |
Share price graph
Share details
Business description
Bull
Bear
Analyst
Newron Pharmaceuticals is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||
Newron is focused on the development of its novel schizophrenia drug, Evenamide. Evenamide is in a 120-patient Phase II study, due to report in Q121. Newron notes that two pivotal Phase III trials could start in Q221. It is progressing possible partnering deals. It also has a marketed product for Parkinson’s disease, Xadago, sold via Zambon in Europe and by Supernus in the US. Xadago H120 royalties were up 14% at €2.5m. Discussions with Zambon to expand the Xadago indication by co-funding a study in Parkinson’s dyskinesia are in progress. Newron has cash and loan facilities to fund it into 2022. Our indicative value is CHF121m.
Evenamide – a novel schizophrenia therapy
Newron is running a 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 and is recruiting well. 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 US approval for the broader 003 indication; the clozapine trial only suffices for clozapine resistance. 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 to fund and market the more general indication of inadequate response to current atypical anti-psychotic agents. It plans to directly market Evenamide for the focused indication of clozapine-resistant adjuvant treatment.
Xadago – established Parkinson’s therapy
Xadago is a marketed product competing with established generic products like rasagiline. Extending its indications into relief of levodopa-induced dyskinesia in Parkinson’s disease would add value but requires a further study. Newron wishes to run this study and is offering to fund 50% of costs (up to €10m), with the remainder to be borne by Zambon. A trial could start in 2021 with possible approval from 2023. In the US, sales efforts are now led by Supernus; this may boost growth.
Valuation – rests mainly on Evenamide potential
Newron reduced its costs over H120, but the H221 start of the Evenamide Phase III and a €10m potential contribution to a further Xadago study will increase the burn rate. The company had €39.4m cash in June, and has available funding well into 2022, including a remaining €15m EIB loan facility. Evenamide partnering could extend its runway. Our model indicates a value of about CHF121m (CHF6.8/share).
|
Edison estimates
Note: Newron reports, Edison Investment Research Forecasts exceptional items and share-based payments. |
|
|