Newron Pharmaceuticals - Evenamide validation underway

Newron is developing evenamide (30mg twice per day) as an add-on to treat poorly managed and refractory schizophrenia. A potentially pivotal Phase II/III study is underway and could report by Q422. Newron hopes to partner evenamide for larger indications while selling the product directly to the targeted clozapine-resistant market. H121 results showed Xadago royalties of €2.65m, up 6.5% over H120. The additional Xadago dyskinesia study due to start in Q122 could eventually boost US sales, but there are potential generic challenges currently being legally contested. Newron had June cash plus loan facilities totalling €36.9m plus Xadago royalties to fund it into 2023. Our indicative value of CHF107m has been adjusted for lower Xadago royalty growth, core costs and higher debt.