Newron Pharmaceuticals SpA (NWRN) AI Stock Analysis

• Market Cap: $209.19M
• Dividend Yield: N/A
• Average Volume (3M): 96.35K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.83
• 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: 108,483
• 30 Day Avg. Volume: 96,353
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 2.76
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 5.46
• 1Y Price Target: $8.53
• Price Target Upside: -18.63% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: CHF8.50 ▼(-18.89% Downside)

Newron Pharmaceuticals SpA's overall stock score is driven by strong financial performance in terms of revenue growth and profitability turnaround. The technical analysis indicates a bullish trend, though overbought signals suggest caution. The valuation appears attractive with a low P/E ratio. However, financial risks from high leverage and negative cash flow need to be addressed to ensure sustainable growth.

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 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.39M	9.06M	6.09M	5.76M	5.26M
Gross Profit	51.39M	9.06M	6.09M	5.76M	4.96M
EBITDA	25.94M	-11.83M	-13.32M	-12.31M	-17.99M
Net Income	15.84M	-16.22M	-17.49M	-14.90M	-21.00M
Balance Sheet
Total Assets	63.91M	25.87M	37.20M	50.49M	51.20M
Cash, Cash Equivalents and Short-Term Investments	9.83M	12.60M	22.77M	34.59M	31.25M
Total Debt	50.47M	48.41M	45.66M	43.08M	26.34M
Total Liabilities	62.45M	55.77M	51.23M	47.38M	33.95M
Stockholders Equity	1.46M	-29.91M	-14.03M	3.11M	17.25M
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 Flow	3.16M	3.25M	-317.00K	8.42M	-616.00K
Financing Cash Flow	15.05M	-192.00K	-186.00K	14.83M	7.37M

Newron Pharmaceuticals SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 10.48 is above the 20-day moving average (MA) of 9.53, above the 50-day MA of 8.28, and above the 200-day MA of 8.19, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 65.33 is Neutral, neither overbought nor oversold. The STOCH value of 85.15 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	69 Neutral	$209.19M	8.75	―	―	744.64%	―
BSLN	68 Neutral	550.56M	7.56	95.80%	―	58.51%	―
IDIA	51 Neutral	839.50M	-4.98	21.76%	―	67.18%	-480.10%
MOLN	46 Neutral	112.85M	-1.55	-38.16%	―	-91.34%	-2.84%
SANN	38 Underperform	140.78M	-2.12	-151.54%	―	-56.85%	-186.55%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Newron Pharmaceuticals SpA Corporate Events

Newron Pharmaceuticals Launches Phase III Study for Schizophrenia Treatment

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

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.