SWX:NWRN

Stock Analysis Report

Executive Summary

Newron Pharmaceuticals S.p.A., a clinical stage biopharmaceutical company, focuses on the research and development, manufacture, and distribution of therapies for the treatment of central and peripheral nervous system in Italy and internationally.


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

How has Newron Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NWRN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.6%

NWRN

5.6%

CH Pharmaceuticals

1.9%

CH Market


1 Year Return

-44.8%

NWRN

2.6%

CH Pharmaceuticals

-5.4%

CH Market

Return vs Industry: NWRN underperformed the Swiss Pharmaceuticals industry which returned 2.7% over the past year.

Return vs Market: NWRN underperformed the Swiss Market which returned -5.3% over the past year.


Shareholder returns

NWRNIndustryMarket
7 Day11.6%5.6%1.9%
30 Day-6.8%2.1%-6.0%
90 Day-16.7%-4.3%-13.7%
1 Year-44.8%-44.8%12.1%2.6%-0.7%-5.4%
3 Year-77.7%-77.7%38.1%18.8%15.3%3.6%
5 Year-83.3%-83.3%23.9%-1.2%15.6%-3.3%

Price Volatility Vs. Market

How volatile is Newron Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Newron Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

2.33x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NWRN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NWRN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NWRN is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: NWRN is unprofitable, so we can't compare its PE Ratio to the Swiss market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NWRN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NWRN is good value based on its PB Ratio (2.3x) compared to the CH Pharmaceuticals industry average (3x).


Next Steps

Future Growth

How is Newron Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

54.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWRN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.6%).

Earnings vs Market: NWRN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NWRN's is expected to become profitable in the next 3 years.

Revenue vs Market: NWRN's revenue (49% per year) is forecast to grow faster than the Swiss market (2.2% per year).

High Growth Revenue: NWRN's revenue (49% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NWRN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Newron Pharmaceuticals performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWRN is currently unprofitable.

Growing Profit Margin: NWRN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NWRN is unprofitable, and losses have increased over the past 5 years at a rate of -2.6% per year.

Accelerating Growth: Unable to compare NWRN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NWRN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (1.9%).


Return on Equity

High ROE: NWRN has a negative Return on Equity (-54.91%), as it is currently unprofitable.


Next Steps

Financial Health

How is Newron Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: NWRN's short term assets (€59.9M) exceed its short term liabilities (€5.6M).

Long Term Liabilities: NWRN's short term assets (€59.9M) exceed its long term liabilities (€17.9M).


Debt to Equity History and Analysis

Debt Level: NWRN's debt to equity ratio (45.5%) is considered high.

Reducing Debt: NWRN's debt to equity ratio has increased from 3.7% to 45.5% over the past 5 years.


Balance Sheet

Inventory Level: NWRN has a low level of unsold assets or inventory.

Debt Coverage by Assets: NWRN's debt is covered by short term assets (assets are 3.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NWRN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NWRN has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of -12.6% each year.


Next Steps

Dividend

What is Newron Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NWRN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NWRN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NWRN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NWRN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NWRN's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Stefan Weber (54yo)

7.83s

Tenure

€691,000

Compensation

Mr. Stefan Weber serves as the Chief Financial Officer and Finances and Administration Director at Duktus S.A. Mr. Weber has been the Chief Executive Officer of Newron Pharmaceuticals SpA since June 1, 201 ...


CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD745.50K) is about average for companies of similar size in the Swiss market ($USD697.22K).

Compensation vs Earnings: Stefan's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Stefan Weber
CEO & Executive Director7.83yrs€691.00k0.086% 78.0k
Roberto Galli
Vice President of Finance7.83yrsno data0.014% 12.7k
Marco Caremi
Executive Vice President of Business Development7.83yrsno datano data
Ravi Anand
Chief Medical Officer14.92yrs€1.22m0.067% 61.2k

7.8yrs

Average Tenure

62yo

Average Age

Experienced Management: NWRN's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stefan Weber
CEO & Executive Director7.83yrs€691.00k0.086% 78.0k
Patrick Langlois
Independent Non-Executive Director11.75yrs€114.00kno data
Ulrich Köstlin
Independent Non-Executive Chairman7yrs€134.00k0.23% 204.5k
Luca Benatti
Non-Executive Director6.08yrs€109.00kno data
Ze' Seltzer
Member of Scientific & Clinical Advisory Boardno datano datano data
Charles Olanow
Member of Scientific Advisory Boardno datano datano data
Fabrizio Stocchi
Member of Scientific and Clinical Advisory Boardno datano datano data
Emilio Perucca
Member of Scientific & Clinical Advisory Boardno datano datano data
Paolo Marchettini
Member of Scientific & Clinical Advisory Boardno datano datano data
Richard Murphy
Chairman of the Board of Statutory Auditors 13yrs€13.00kno data

8.3yrs

Average Tenure

58yo

Average Age

Experienced Board: NWRN's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Newron Pharmaceuticals S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Newron Pharmaceuticals S.p.A.
  • Ticker: NWRN
  • Exchange: SWX
  • Founded: 1998
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CHF90.654m
  • Shares outstanding: 17.85m
  • Website: https://www.newron.com

Number of Employees


Location

  • Newron Pharmaceuticals S.p.A.
  • Via Ludovico Ariosto 21
  • Bresso
  • Milan
  • 20091
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWRNSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFDec 2006
NP5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2006
NWPH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2006
NP5XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURDec 2006
0QOILSE (London Stock Exchange)YesOrdinary SharesGBCHFDec 2006

Biography

Newron Pharmaceuticals S.p.A., a clinical stage biopharmaceutical company, focuses on the research and development, manufacture, and distribution of therapies for the treatment of central and peripheral nervous system in Italy and internationally. The company offers Xadago (safinamide) for the treatment of Parkinson’s disease. Its pipeline of products include Sarizotan for patients with Rett syndrome; Evenamide, a first add-on therapy for the treatment of patients with positive symptoms of schizophrenia; and Ralfinamide for patients with specific rare pain indications. Newron Pharmaceuticals S.p.A. has a collaboration agreement with Meiji Seika Pharma Co., Ltd. for the development and commercialization of safinamide in Japan and Asian territories. The company was founded in 1998 and is headquartered in Bresso, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 22:30
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.