Newron Pharmaceuticals - A year ahead of clinical milestones for evenamide

Newron has released its annual report and provided an operational overview for evenamide as a potential schizophrenia therapy. Positive interim data for the Phase II (study 014/015, in treatment-resistant schizophrenia, TRS) was shared in Q123 with similar results demonstrated in the full/top-line six-week data for all enrolled patients (released on 20 March 2023). The Phase III (study 008A, for patients on antipsychotics but not with TRS) is ongoing; results are expected in H223. Newron is preparing another Phase III (study 003 in TRS), which it plans to initiate in 2023. We believe positive results from these trials would represent the most significant near-term catalysts. At end December 2022, Newron had a total cash and liquid asset position of €22.8m, which we estimate will provide a cash runway into 2024. We value Newron at CHF128.7m or CHF7.2/share (previously CHF113.9m or CHF6.4/share).