Newron Pharmaceuticals - Seeing STARS

The statistical analysis plan for the pivotal STARS trial of sarizotan for symptomatic treatment of Rett syndrome should be FDA approved soon. This will allow data analysis, meaning that top-line data could be out by mid-2020. In FY19, Xadago (Parkinson’s disease) generated royalties of €4.7m plus a €2.3m Japanese milestone. A trial in dyskinesia is planned to expand the indication. Evenamide, a novel schizophrenia therapy, may start Phase III from Q420. Newron has cash (€39.2m) and loan facilities (€22.5m) to last through 2021. Our indicative value has been adjusted to CHF340m (CHF19.10/share), formerly CHF466m, taking into account sales, revised trial durations and start windows and debt.