Newron Pharmaceuticals SpA (NWRN) AI Stock Analysis

• Market Cap: CHF139.53M
• Dividend Yield: N/A
• Average Volume (3M): 34.08K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.64
• Revenue Growth: 450.19%
• EPS Growth: N/A
• Country: CH
• Employees: 22
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): 1.20
• Shares Outstanding: 19,960,995
• 10 Day Avg. Volume: 29,607
• 30 Day Avg. Volume: 34,080
• PEG Ratio: 0.57
• Price to Book (P/B): 97.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.41
• 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: CHF7.50
• Price Target Upside: 7.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: CHF7.50 ▲(7.30%Upside)

Newron Pharmaceuticals SpA's score is driven primarily by strong revenue growth and profitability but is offset by concerns regarding leverage and negative cash flows. The technical analysis suggests neutral market sentiment, while the valuation is reasonable, reflecting balanced growth prospects and financial risks.

Newron Pharmaceuticals SpA Business Overview & Revenue Model

Company Description

Newron Pharmaceuticals SpA (NWRN) is a biopharmaceutical company focused on the development of novel therapies for diseases of the central and peripheral nervous systems. Headquartered in Bresso, Italy, the company is engaged in the research and development of pharmaceutical products targeting neurological and psychiatric disorders. Newron's core product pipeline includes innovative treatments for conditions such as Parkinson's disease, schizophrenia, and rare diseases characterized by pain and inflammation.

How the Company Makes Money

Newron Pharmaceuticals SpA primarily generates revenue through the development and commercialization of its proprietary pharmaceutical products. The company's revenue model is based on securing licensing agreements and partnerships with larger pharmaceutical companies for the development and marketing of its drug candidates. These collaborations often involve upfront payments, milestone payments upon achieving specific development or regulatory milestones, and royalties on sales of successfully commercialized products. Additionally, Newron may receive research grants and funding to support its drug development programs, contributing to its overall revenue.

Newron Pharmaceuticals SpA Financial Statement Overview

Summary

Newron Pharmaceuticals SpA shows significant revenue growth and a turnaround to profitability, with a net profit margin of 30.84%. However, the balance sheet is leveraged with high debt levels and low equity, indicating financial risk. Cash flow remains negative, highlighting the need for improved liquidity management.

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: Neutral
• Last Price: 6.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 6.99 is above the 20-day moving average (MA) of 6.93, below the 50-day MA of 7.26, and below the 200-day MA of 8.05, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 47.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	CHF656.30M	8.42		―	32.30%	631.04%
NWRN	60 Neutral	CHF139.53M	9.90		―	450.19%	―
IDIA	56 Neutral	CHF642.62M	―		―	11.61%	-356.20%
Sector *	52 Neutral	$7.46B	-0.04	-63.82%	2.49%	16.43%	<0.01%
SANN	48 Neutral	CHF187.48M	2.58	-93.91%	―	-62.17%	-166.33%
MOLN	47 Neutral	$127.18M	―	-40.40%	―	-66.82%	4.14%

Newron Pharmaceuticals SpA Corporate Events

Newron Pharmaceuticals Advances Phase III Program for Schizophrenia Treatment

Newron Pharmaceuticals has received approval for its pivotal Phase III development program ENIGMA-TRS, which will evaluate Evenamide as an add-on therapy for treatment-resistant schizophrenia (TRS). This program, consisting of two studies, aims to meet regulatory requirements for marketing authorization in major markets like the USA and Europe. The approval marks a significant step for Newron, potentially enhancing its market position by addressing the unmet medical need for effective TRS treatments. The studies will assess the efficacy, tolerability, and safety of Evenamide, with patient recruitment starting immediately and results expected in late 2026.

Newron Pharmaceuticals Advances Phase-III Trials for Schizophrenia Treatment

Newron Pharmaceuticals announced the approval of its pivotal Phase-III development program ENIGMA-TRS, which includes two studies to evaluate Evenamide as an add-on therapy for treatment-resistant schizophrenia (TRS). The studies, ENIGMA-TRS 1 and ENIGMA-TRS 2, aim to address the unmet medical need for effective treatments in TRS patients by targeting the glutamatergic system, offering a new therapeutic option for those who do not respond adequately to current antipsychotics.

New Leadership and Strategic Financial Moves at Newron Pharmaceuticals

Newron Pharmaceuticals announced the election of Dr. Chris Martin as the new Chairman of the Board during their 2025 General Meeting. The meeting also extended a capital increase until 2028, although some agenda items were not voted on due to a lack of quorum. This leadership change and financial strategy adjustment may influence Newron’s future operations and strategic direction, especially in the context of their ongoing drug development efforts.