Newron Pharmaceuticals SpA (NWRN) AI Stock Analysis

• Market Cap: $285.44M
• Dividend Yield: N/A
• Average Volume (3M): 170.30K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.80
• 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: 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: 0.50
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 2.37
• Enterprise Value/Ebitda: 4.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: CHF15.50 ▲(8.70% Upside)

The overall stock score of 70 reflects strong technical momentum and reasonable valuation, offset by financial risks due to high leverage and negative cash flow. The company's impressive revenue growth and profitability turnaround are significant positives, but balance sheet and cash flow concerns need addressing for 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 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: 14.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 14.26 is above the 20-day moving average (MA) of 14.14, above the 50-day MA of 12.27, and above the 200-day MA of 8.99, indicating a bullish trend. The MACD of 0.50 indicates Positive momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 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	CHF568.22M	7.80	―	―	58.51%	―
NWRN	70 Outperform	$285.44M	11.94	―	―	744.64%	―
MOLN	55 Neutral	$129.20M	-1.97	-49.86%	―	-100.00%	14.45%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IDIA	45 Neutral	CHF783.37M	-4.64	―	―	228.54%	63.37%
SANN	41 Neutral	$140.58M	-2.05	-301.13%	―	-56.85%	-186.55%

Newron Pharmaceuticals SpA Corporate Events

Newron Pharmaceuticals Advances Evenamide for Schizophrenia Treatment

Newron Pharmaceuticals announced the presentation of new analyses and updates on their clinical program for Evenamide, an add-on therapy for schizophrenia, at the 38th Congress of the European College of Neuropsychopharmacology. The results from previous studies indicate that Evenamide shows significant clinical benefits for patients with treatment-resistant schizophrenia, offering improvements in symptoms and a favorable safety profile compared to existing treatments. These findings support the initiation of a potentially approval-relevant Phase III study, ENIGMA-TRS 1, which aims to further demonstrate the drug’s efficacy and safety as an add-on therapy for TRS patients.

The most recent analyst rating on (CH:NWRN) stock is a Hold with a CHF8.50 price target. To see the full list of analyst forecasts on Newron Pharmaceuticals SpA stock, see the CH:NWRN Stock Forecast page.

Newron Pharmaceuticals Advances Evenamide Development with Positive H1 2025 Results

Newron Pharmaceuticals reported its financial and operational results for the first half of 2025, highlighting significant progress in its pivotal Phase III development program for Evenamide, a potential breakthrough treatment for schizophrenia. The company has initiated patient enrollment for its ENIGMA-TRS studies and secured licensing agreements in Asia, while also expanding its intellectual property protection for Evenamide. The recent publication of preclinical data supports Evenamide’s potential as a transformative therapy, offering a novel approach to treating schizophrenia symptoms. Financially, Newron showed improved revenues and reduced net loss, indicating a positive trajectory for stakeholders.

The most recent analyst rating on (CH:NWRN) stock is a Hold with a CHF8.50 price target. To see the full list of analyst forecasts on Newron Pharmaceuticals SpA stock, see the CH:NWRN Stock Forecast page.

Newron Pharmaceuticals Advances Evenamide Phase III Trials for Schizophrenia

Newron Pharmaceuticals has announced significant progress in its pivotal Phase III development program for Evenamide, an add-on therapy for treatment-resistant schizophrenia. The company has received regulatory approvals and initiated patient recruitment for its ENIGMA-TRS studies, highlighting strategic partnerships in Asia to expand its market reach. These developments position Evenamide as a potential blockbuster drug, addressing a critical need for new schizophrenia treatments and enhancing Newron’s industry standing.

The most recent analyst rating on (CH:NWRN) stock is a Hold with a CHF8.50 price target. To see the full list of analyst forecasts on Newron Pharmaceuticals SpA stock, see the CH:NWRN Stock Forecast page.

Newron Pharmaceuticals Advances Evenamide for Schizophrenia Treatment

Newron Pharmaceuticals announced the presentation of data on Evenamide, its lead drug candidate, at the World Congress of Biological Psychiatry 2025. Evenamide, a glutamate release modulator, is being developed as an add-on therapy for schizophrenia patients who do not respond adequately to second-generation antipsychotics. The company presented results from Study 008A, which demonstrated significant efficacy and tolerability of Evenamide as an add-on treatment. Additionally, the ENIGMA-TRS 1 study aims to further evaluate Evenamide’s efficacy in treatment-resistant schizophrenia, with plans to enroll over 600 subjects globally. These developments could potentially enhance Newron’s position in the CNS disorder treatment market and offer new hope for patients with limited treatment options.

The most recent analyst rating on (CH:NWRN) stock is a Hold with a CHF8.50 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 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.