Newron Pharmaceuticals SpA (NWRN) AI Stock Analysis

• Market Cap: CHF456.11M
• Dividend Yield: N/A
• Average Volume (3M): 170.30K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.95
• Revenue Growth: 744.64%
• EPS Growth: N/A
• Country: CH
• Employees: 22
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.00
• Shares Outstanding: 19,960,995
• 10 Day Avg. Volume: 255,106
• 30 Day Avg. Volume: 170,297
• PEG Ratio: -0.06
• Price to Book (P/B): 121.21
• Price to Sales (P/S): 3.44
• P/FCF Ratio: -10.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF26.13
• Price Target Upside: 10.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: CHF22.00 ▼(-6.98% Downside)

Newron Pharmaceuticals SpA demonstrates strong technical momentum and reasonable valuation, which are the most significant factors driving the score. Financial performance shows improvement but is tempered by high leverage and negative cash flow, which are risks that need addressing.

Positive Factors

Revenue Growth

A 467% increase in revenue indicates strong market demand and successful commercialization efforts, supporting long-term growth potential.

Profitability Turnaround

Turning profitable with a 30.84% net margin reflects enhanced operational efficiency and effective cost management, bolstering financial health.

Operational Efficiency

Improved EBIT and EBITDA margins suggest better operational performance, which can sustain profitability and support future growth initiatives.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and manage economic downturns effectively.

Negative Cash Flow

Negative cash flow indicates cash usage exceeds profits, posing a risk to operational sustainability and limiting reinvestment in R&D and growth.

Low Equity Ratio

A low equity ratio highlights financial vulnerability, as it suggests reliance on debt financing, which can strain resources during financial stress.

Newron Pharmaceuticals SpA Business Overview & Revenue Model

Company Description

Newron Pharmaceuticals SpA is a biopharmaceutical company focused on the research, development, and commercialization of innovative therapies for patients with central nervous system (CNS) disorders. The company specializes in addressing unmet medical needs in various areas, particularly in the treatment of conditions such as Parkinson's disease, schizophrenia, and pain management. Newron's core products include its lead candidate, safinamide, which has been approved for use in certain markets, and other pipeline candidates aimed at enhancing treatment outcomes in CNS disorders.

How the Company Makes Money

Newron Pharmaceuticals generates revenue primarily through the commercialization of its pharmaceutical products, including sales of approved therapies in various markets. The company's revenue model is bolstered by strategic partnerships and collaborations with larger pharmaceutical companies that may include licensing agreements, co-development arrangements, and profit-sharing agreements. Additionally, Newron may receive milestone payments as its products advance through the clinical trial phases and achieve regulatory approvals. The company also seeks to expand its revenue streams through ongoing research and development efforts aimed at bringing new therapies to market.

Newron Pharmaceuticals SpA Financial Statement Overview

Summary

Newron Pharmaceuticals SpA shows strong revenue growth and a turnaround to profitability, with a significant improvement in net profit margin. However, the balance sheet is leveraged with high debt levels and low equity, posing financial risks. Cash flow management is concerning with negative free cash flow, indicating a need for improved liquidity strategies.

Income Statement

The income statement shows a significant improvement in revenue from $9.06 million to $51.39 million in 2024, marking a strong revenue growth of 467%. Gross profit margin remains high at 100% due to no cost of goods sold. The net profit margin improved from negative to 30.84%, indicating a turnaround to profitability. EBIT and EBITDA margins improved significantly, indicating enhanced operational efficiency. However, historical volatility and past losses highlight potential risks.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to a small equity base, with stockholders' equity at $1.46 million, highlighting potential financial risk. The equity ratio is low at 2.28%, indicating low equity relative to total assets. However, the company is gradually improving its financial position, moving from negative equity in previous years to a small positive figure in 2024. The high liabilities and leverage could pose risks if not managed well.

Cash Flow

Cash flow analysis reveals a challenging situation with negative free cash flow of $17.63 million in 2024, despite improved revenues. The operating cash flow to net income ratio is negative, indicating operational cash outflows. Free cash flow to net income ratio is also negative, reflecting cash usage exceeding profits. The company must focus on improving cash generation to sustain its operations and support growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.88M	51.39M	9.06M	6.09M	5.76M	5.26M
Gross Profit	59.88M	51.39M	9.06M	6.09M	5.76M	4.96M
EBITDA	34.96M	25.94M	-11.83M	-13.32M	-11.92M	-17.99M
Net Income	25.33M	15.84M	-16.22M	-17.49M	-14.90M	-21.00M
Balance Sheet
Total Assets	61.39M	63.91M	25.87M	37.20M	50.49M	51.20M
Cash, Cash Equivalents and Short-Term Investments	43.20M	9.83M	12.60M	22.77M	34.59M	31.25M
Total Debt	52.57M	50.47M	48.41M	45.66M	43.08M	26.34M
Total Liabilities	59.81M	62.45M	55.77M	51.23M	47.38M	33.95M
Stockholders Equity	1.58M	1.46M	-29.91M	-14.03M	3.11M	17.25M
Cash Flow
Free Cash Flow	24.53M	-17.63M	-10.15M	-11.11M	-11.46M	-15.62M
Operating Cash Flow	24.57M	-17.61M	-10.14M	-11.09M	-11.45M	-15.59M
Investing Cash Flow	-12.40M	3.16M	3.25M	-317.00K	8.42M	-616.00K
Financing Cash Flow	6.58M	15.05M	-192.00K	-186.00K	14.83M	7.37M

Newron Pharmaceuticals SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:NWRN, the sentiment is Positive. The current price of 23.65 is above the 20-day moving average (MA) of 19.90, above the 50-day MA of 16.79, and above the 200-day MA of 10.34, indicating a bullish trend. The MACD of 1.80 indicates Negative momentum. The RSI at 79.08 is Negative, neither overbought nor oversold. The STOCH value of 88.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:NWRN.

Newron Pharmaceuticals SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWRN	74 Outperform	CHF456.11M	19.75	―	―	744.64%	―
BSLN	73 Outperform	CHF663.84M	9.23	―	―	58.51%	―
MOLN	54 Neutral	CHF142.32M	-2.11	-49.86%	―	-100.00%	14.45%
SANN	53 Neutral	CHF172.40M	-2.51	-301.13%	―	-56.85%	-186.55%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IDIA	44 Neutral	CHF1.13B	-6.62	―	―	229.23%	63.47%

Newron Pharmaceuticals SpA Corporate Events

Newron Pharmaceuticals Advances Evenamide for Schizophrenia Treatment

Newron Pharmaceuticals announced the presentation of new analyses and updates on their clinical program for Evenamide, an add-on therapy for schizophrenia, at the 38th Congress of the European College of Neuropsychopharmacology. The results from previous studies indicate that Evenamide shows significant clinical benefits for patients with treatment-resistant schizophrenia, offering improvements in symptoms and a favorable safety profile compared to existing treatments. These findings support the initiation of a potentially approval-relevant Phase III study, ENIGMA-TRS 1, which aims to further demonstrate the drug’s efficacy and safety as an add-on therapy for TRS patients.

Newron Pharmaceuticals Advances Evenamide Development with Positive H1 2025 Results

Newron Pharmaceuticals reported its financial and operational results for the first half of 2025, highlighting significant progress in its pivotal Phase III development program for Evenamide, a potential breakthrough treatment for schizophrenia. The company has initiated patient enrollment for its ENIGMA-TRS studies and secured licensing agreements in Asia, while also expanding its intellectual property protection for Evenamide. The recent publication of preclinical data supports Evenamide’s potential as a transformative therapy, offering a novel approach to treating schizophrenia symptoms. Financially, Newron showed improved revenues and reduced net loss, indicating a positive trajectory for stakeholders.

Newron Pharmaceuticals Advances Evenamide Phase III Trials for Schizophrenia

Newron Pharmaceuticals has announced significant progress in its pivotal Phase III development program for Evenamide, an add-on therapy for treatment-resistant schizophrenia. The company has received regulatory approvals and initiated patient recruitment for its ENIGMA-TRS studies, highlighting strategic partnerships in Asia to expand its market reach. These developments position Evenamide as a potential blockbuster drug, addressing a critical need for new schizophrenia treatments and enhancing Newron’s industry standing.