Newron Pharmaceuticals SpA (NWRN) AI Stock Analysis

• Market Cap: CHF535.39M
• Dividend Yield: N/A
• Average Volume (3M): 170.30K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 2.01
• 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: 20,014,585
• 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: CHF43.00
• Price Target Upside: 60.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: CHF30.00 ▲(12.15% Upside)

The score is primarily driven by improved financial performance (strong revenue growth and profitability turnaround), offset by balance-sheet leverage and negative free cash flow. Technically, the trend is strong with broad support above moving averages, though momentum indicators are nearing overbought. Valuation is moderate on a P/E basis, with no dividend yield support.

Positive Factors

Revenue Growth

A multi-fold revenue increase signals durable commercial traction for approved products and/or licensing income. A materially larger revenue base improves the company's ability to fund R&D, absorb fixed costs, and negotiate partnerships, supporting stability over the next 2–6 months.

Margin Recovery and Profitability

The shift to sustained profitability and improved operating margins indicates better cost structure and pricing power. Higher margins increase internal funding capacity for development and reduce reliance on dilutive financing, a durable improvement if core revenues persist.

Balance Sheet Stabilization

Transitioning to positive equity reflects structural repair of the capital base and lowers immediate insolvency risk. Even a small equity buffer improves creditor confidence and strategic flexibility for partnering or modest borrowing over the medium term.

Negative Factors

High Leverage and Low Equity Ratio

A very low equity ratio and high leverage mean limited loss-absorbing capacity and greater sensitivity to adverse shocks. This constrains long-term strategic moves, raises refinancing risk and potential covenant pressure, and is a persistent structural vulnerability.

Negative Free Cash Flow

Large negative free cash flow despite higher revenues shows cash is being consumed to support operations or growth. Continued cash burn can force external financing, limit reinvestment choices, and pressure execution of clinical or commercial programs over months.

Poor Cash Conversion of Earnings

Earnings are not translating into cash, indicating low quality of reported profit or timing mismatches in working capital. This weak cash conversion elevates liquidity risk and may require recurring financing, affecting long-term sustainability and planning.

Newron Pharmaceuticals SpA Business Overview & Revenue Model

Company Description

Newron 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 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: 26.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 26.75 is above the 20-day moving average (MA) of 24.11, above the 50-day MA of 19.38, and above the 200-day MA of 11.26, indicating a bullish trend. The MACD of 2.75 indicates Negative momentum. The RSI at 63.14 is Neutral, neither overbought nor oversold. The STOCH value of 59.65 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSLN	73 Outperform	CHF689.45M	9.47	―	―	58.51%	―
NWRN	67 Neutral	CHF535.39M	22.33	―	―	744.64%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MOLN	48 Neutral	CHF134.45M	-2.05	-49.86%	―	-100.00%	14.45%
SANN	48 Neutral	CHF184.55M	-2.59	-301.13%	―	-56.85%	-186.55%
IDIA	46 Neutral	CHF952.55M	-5.71	―	―	229.23%	63.47%

Newron Pharmaceuticals SpA Corporate Events

EA Pharma Starts Phase III Trial of Newron’s Evenamide for Treatment‑Resistant Schizophrenia in Japan

Newron Pharmaceuticals’ partner EA Pharma, a subsidiary of Eisai, has initiated a multicenter, randomized, double-blind, placebo-controlled Phase III trial in Japan of evenamide (EA8001) as an add-on therapy for patients with treatment-resistant schizophrenia who have responded poorly to at least two existing antipsychotics. The move marks a key milestone in the global development of evenamide, complementing Newron’s ongoing ENIGMA-TRS Phase III program outside EA Pharma’s Asian territories, and underscores the candidate’s potential to address a significant unmet need with a novel glutamate-based mechanism and a favorable efficacy and safety profile demonstrated in earlier pivotal trials, strengthening Newron’s positioning in CNS therapeutics while advancing EA Pharma’s regional schizophrenia franchise.

The most recent analyst rating on (CH:NWRN) stock is a Buy with a CHF26.00 price target. To see the full list of analyst forecasts on Newron Pharmaceuticals SpA stock, see the CH:NWRN Stock Forecast page.

Newron Secures EU Patent Extension for Lead Schizophrenia Drug Evenamide

Newron Pharmaceuticals has secured a new European compound patent, EP4615820, covering the crystalline forms, manufacturing processes and uses of its lead schizophrenia drug candidate Evenamide, extending intended product exclusivity in the EU to 2044 and further strengthening its intellectual property position around the asset. The patent win underpins Newron’s strategy to maximize the therapeutic and commercial potential of Evenamide, which is in a pivotal global phase III program (ENIGMA‑TRS) targeting at least 1,000 patients with treatment‑resistant or poorly responsive schizophrenia, a large, high‑morbidity population for whom current dopamine‑focused antipsychotics are often insufficient; by reinforcing long-term protection in Europe and with corresponding filings in major markets, the company bolsters its competitive footing in CNS drug development and enhances the prospective value of Evenamide to patients, partners and investors if late‑stage trials succeed.

The most recent analyst rating on (CH:NWRN) stock is a Buy with a CHF26.00 price target. To see the full list of analyst forecasts on Newron Pharmaceuticals SpA stock, see the CH:NWRN Stock Forecast page.

Newron Wins Long-Term EU Patent Protection for Lead Schizophrenia Drug Evenamide

Newron Pharmaceuticals has secured a new European compound patent (EP4615820) covering the crystalline forms, manufacturing processes and uses of its lead product candidate Evenamide, with protection expected to run until 2044. The patent grant, which builds on an already comprehensive IP estate and is being pursued in major global markets, strengthens Newron’s exclusivity and underpins the therapeutic and commercial potential of Evenamide in treatment-resistant schizophrenia, reinforcing the company’s long-term positioning in CNS drug development and its strategy to capture value from a first-in-class mechanism in a large unmet-need segment of the schizophrenia market.

The most recent analyst rating on (CH:NWRN) stock is a Buy with a CHF26.00 price target. To see the full list of analyst forecasts on Newron Pharmaceuticals SpA stock, see the CH:NWRN Stock Forecast page.

Newron Pharmaceuticals Launches Phase III Study for Schizophrenia Treatment

Newron Pharmaceuticals has announced the US launch of its global Phase III clinical study, ENIGMA-TRS 2, to evaluate Evenamide as an add-on therapy for treatment-resistant schizophrenia (TRS). This study, involving at least 400 patients, aims to establish Evenamide as the first approved add-on therapy for TRS, addressing a significant unmet medical need for patients who do not respond to existing antipsychotics. The study’s results, expected in late 2026, could significantly impact Newron’s market positioning and offer new hope for TRS patients worldwide.

The most recent analyst rating on (CH:NWRN) stock is a Buy with a CHF22.00 price target. To see the full list of analyst forecasts on Newron Pharmaceuticals SpA stock, see the CH:NWRN Stock Forecast page.