Newron Pharmaceuticals - Xadago slows, Evenamide lags but STARS ahead

Newron Pharmaceuticals’ interim results highlight that despite additional worldwide launches of Xadago, sales growth in the US and Europe remain below our expectations. For Evenamide, the company is addressing FDA concerns on the pre-clinical data, and plans are underway for short-term explanatory studies prior to starting the pivotal Phase III trials. Top-line data from the pivotal trial STARS, investigating sarizotan in Rett syndrome, is expected in Q419. The reported net loss increased 85% to €14.0m in H119, driven by higher than expected net R&D expenses. Reassessing our sales expectations for Xadago and operating forecasts, we now value Newron at CHF466m from CHF653m.