Newron Pharmaceuticals - Evenamide catalyst approaching

Newron Pharmaceuticals is focused on the development of novel compounds for the treatment of various neurological conditions. Heading the R&D pipeline is evenamide, which is being investigated for the treatment of schizophrenia. In September 2021, the drug began a Phase III pivotal trial (Study 008A) in this indication, with top-line results expected in H123. Positive results here would represent the most significant near-term catalyst for the company, in our view. In June 2022, Newron reported positive safety and efficacy data for evenamide in a parallel trial (Study 014 focused on treatment-resistant schizophrenia), providing encouraging support for Study 008A. At end-June 2022, it had a total cash and liquid asset position of €28.4m, which we estimate will provide a cash runway to H223. We value Newron at CHF113.9m or CHF6.4 per share (previously CHF107m or CHF6 per share).