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Newron Pharmaceuticals SpA (CH:NWRN)
:NWRN
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Newron Pharmaceuticals SpA (NWRN) AI Stock Analysis

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CH:NWRN

Newron Pharmaceuticals SpA

(OTC:NWRN)

Rating:69Neutral
Price Target:
CHF8.50
▼(-1.51% Downside)
The overall stock score of 69 reflects strong revenue growth and profitability improvements, balanced by financial risks due to high leverage and negative cash flow. Positive technical indicators suggest upward momentum, though caution is advised due to potential overbought conditions. The valuation appears reasonable, supporting a moderately positive outlook.

Newron Pharmaceuticals SpA (NWRN) vs. iShares MSCI Switzerland ETF (EWL)

Newron Pharmaceuticals SpA Business Overview & Revenue Model

Company DescriptionNewron Pharmaceuticals S.p.A., a clinical stage biopharmaceutical company, focuses on the research and development of therapies for the treatment of central and peripheral nervous system, and pain in Italy and the United States. The company offers Xadago (safinamide) for the treatment of Parkinson's disease, as well as develops Xadago for the treatment of levodopa induced dyskinesia. It also develops Evenamide for Schizophrenia and treatment resistant schizophrenia; and Ralfinamide for orphan indication in neuropathic pain. Newron Pharmaceuticals S.p.A. was founded in 1999 and is headquartered in Bresso, Italy.
How the Company Makes MoneyNewron Pharmaceuticals generates revenue primarily through the development and commercialization of its pharmaceutical products. The company typically makes money by advancing its drug candidates through clinical trials, ultimately aiming for regulatory approval and market launch. Key revenue streams include potential milestone payments from partnerships with larger pharmaceutical companies, royalties on sales of approved products, and funding from licensing agreements. Significant partnerships with other biotech or pharmaceutical companies can also contribute to its earnings, particularly if they provide upfront payments or shared development costs.

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 a concern, with negative free cash flow indicating the need for improved liquidity strategies.
Income Statement
78
Positive
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
55
Neutral
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue51.39M9.06M6.09M5.76M5.26M
Gross Profit51.39M9.06M6.09M5.76M4.96M
EBITDA25.94M-11.83M-13.32M-12.31M-17.99M
Net Income15.84M-16.22M-17.49M-14.90M-21.00M
Balance Sheet
Total Assets63.91M25.87M37.20M50.49M51.20M
Cash, Cash Equivalents and Short-Term Investments9.83M12.60M22.77M34.59M31.25M
Total Debt50.47M48.41M45.66M43.08M26.34M
Total Liabilities62.45M55.77M51.23M47.38M33.95M
Stockholders Equity1.46M-29.91M-14.03M3.11M17.25M
Cash Flow
Free Cash Flow-17.63M-10.15M-11.11M-11.46M-15.62M
Operating Cash Flow-17.61M-10.14M-11.09M-11.45M-15.59M
Investing Cash Flow3.16M3.25M-317.00K8.42M-616.00K
Financing Cash Flow15.05M-192.00K-186.00K14.83M7.37M

Newron Pharmaceuticals SpA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.63
Price Trends
50DMA
7.38
Positive
100DMA
7.37
Positive
200DMA
8.00
Positive
Market Momentum
MACD
0.37
Negative
RSI
61.03
Neutral
STOCH
51.13
Neutral
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 8.63 is above the 20-day moving average (MA) of 8.00, above the 50-day MA of 7.38, and above the 200-day MA of 8.00, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 61.03 is Neutral, neither overbought nor oversold. The STOCH value of 51.13 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$168.07M11.66
450.19%
51
Neutral
$7.91B-0.36-41.71%2.23%23.45%-1.86%
$145.54M-48.90%
65
Neutral
CHF576.14M7.91
58.51%
51
Neutral
CHF614.71M
67.18%-480.10%
$217.74M2.70-93.91%
CHF118.81M3.55
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:NWRN
Newron Pharmaceuticals SpA
8.63
0.63
7.88%
MLLCF
Molecular Partners AG
4.22
-1.67
-28.35%
CH:BSLN
Basilea Pharmaceutica
47.30
2.05
4.53%
CH:IDIA
Idorsia Ltd
2.79
1.04
59.43%
SPHDF
Santhera Pharmaceuticals Holding
17.58
5.88
50.26%
CH:XLS
Xlife Sciences Ltd.
20.50
-6.10
-22.93%

Newron Pharmaceuticals SpA Corporate Events

Newron Pharmaceuticals Launches Phase III Study for Schizophrenia Treatment
Aug 12, 2025

Newron Pharmaceuticals has initiated the Phase III ENIGMA-TRS program to evaluate Evenamide as an add-on therapy for treatment-resistant schizophrenia (TRS). This international study will involve at least 600 patients and aims to provide a new treatment option for those who do not respond adequately to current antipsychotics. The study’s 12-week results are expected in Q4 2026, and it builds on previous findings that demonstrated Evenamide’s efficacy and favorable safety profile. The program’s success could significantly impact Newron’s market positioning and offer a breakthrough for TRS patients.

Newron Pharmaceuticals Unveils Promising Schizophrenia Treatment Findings
Aug 11, 2025

Newron Pharmaceuticals has announced promising preclinical research results for Evenamide, a potential treatment for schizophrenia. The study, published in Neuropsychopharmacology, highlights Evenamide’s unique mechanism of action, targeting the hyperexcitability of the hippocampus, which could improve outcomes for patients who are treatment-resistant or inadequately responsive to current antipsychotics. This development represents a significant advancement in schizophrenia treatment, potentially offering a new therapeutic strategy that addresses positive, cognitive, and negative symptoms without the side effects associated with existing antipsychotics.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025