Newron Pharmaceuticals (NWRN) H2 2024 earnings summary

Executive summary

• Achieved first-ever net profit of EUR 15.8 million in 2024, reversing a EUR 16.2 million loss in 2023, with record revenues driven by licensing deals, royalties, and investor proceeds.

• Secured major licensing agreements with EA Pharma/Eisai and Myung In Pharm in Asia, providing up to EUR 117 million in potential payments and validating evenamide's value.

• Exceptional clinical data for evenamide in treatment-resistant and chronic schizophrenia, showing significant efficacy and safety in multiple studies.

• Board strengthened with new independent members, proposed leadership transition, and renewal, including Dr. Chris Martin as Chairman.

• Raised EUR 15 million from institutional investors and extended EIB loan repayment, supporting financial runway and development.

Financial highlights

• FY 2024 revenues rose to EUR 51.4 million, mainly from EUR 44.5 million in license income; royalties increased to EUR 6.9 million.

• Operating profit reached EUR 26.2 million, reversing a prior year loss; net profit was EUR 15.8 million.

• Cash and financial assets at year-end totaled EUR 9.8 million, with EUR 44 million receivable to be cashed in 2025.

• R&D expenses increased to EUR 13.6 million; G&A expenses rose to EUR 11.5 million due to one-time transaction costs.

• EUR 15 million raised from equity issuance, ensuring funding for development and negotiations.

Outlook and guidance

• Pivotal Phase III trial for evenamide in treatment-resistant schizophrenia to begin in Q2 2025, targeting over 800 patients, with top-line results expected in Q3/Q4 2026.

• Additional partnering agreements and funding anticipated before U.S. NDA submission in Q1 2027.

• Plans to uplist shares to Nasdaq, maintain Swiss listing, and introduce ADR program, with AGM scheduled for April 2025.

• Cash and licensing proceeds expected to fund operations and development through 2026.