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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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Newron Pharmaceuticals SpA

(OTC:NWRN)

Rating:60Neutral
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 (NWRN) vs. iShares MSCI Switzerland ETF (EWL)

Newron Pharmaceuticals SpA Business Overview & Revenue Model

Company DescriptionNewron 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 MoneyNewron 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
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
Neutral
Last Price6.99
Price Trends
50DMA
7.26
Negative
100DMA
7.55
Negative
200DMA
8.05
Negative
Market Momentum
MACD
-0.07
Negative
RSI
48.89
Neutral
STOCH
47.34
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
CHF655.08M8.37
32.30%631.04%
65
Neutral
CHF27.11B19.969.37%2.18%35.94%-1.97%
60
Neutral
CHF139.53M9.90
450.19%
56
Neutral
CHF659.51M
11.61%-356.20%
48
Neutral
CHF181.01M2.58-93.91%-62.17%-166.33%
47
Neutral
$120.72M-40.40%-66.82%4.14%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:NWRN
Newron Pharmaceuticals SpA
6.99
-1.01
-12.62%
CH:MOLN
Molecular Partners AG
3.15
-2.73
-46.43%
CH:BSLN
Basilea Pharmaceutica
53.90
14.65
37.32%
CH:IDIA
Idorsia Ltd
2.86
0.55
23.81%
CH:SANN
Santhera Pharmaceuticals Holding
14.50
5.25
56.76%

Newron Pharmaceuticals SpA Corporate Events

Newron Pharmaceuticals Advances Phase III Program for Schizophrenia Treatment
May 12, 2025

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
May 12, 2025

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
Apr 23, 2025

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.

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: Jun 13, 2025