Newron Pharmaceuticals S.p.A. (“Newron”) (SIX: NWRN), a biopharmaceutical company focused on the development of novel therapies for patients with diseases of the central and peripheral nervous system, today announced its results for the half year ended June 30, 2017.
Half Year 2017 Highlights
- US FDA approval received for Xadago® (safinamide) for Parkinson’s disease patients. Consequently, Newron received EUR 11.3 million milestone payments from Zambon. Post-period, Newron, Zambon and US WorldMeds announced that Xadago® is available in the U.S. for Parkinson’s disease patients
- Zambon launched Xadago® in Portugal for patients with mid- to late-stage Parkinson’s disease. Seqirus and Zambon entered into a partnership for Xadago® in Australia and New Zealand; Meiji Seika and Eisai entered into a collaboration for the development and commercialization of Xadago® in Japan and Asia; Valeo Pharma and Zambon formed a partnership for Xadago® in Canada
- Encouraging results of phase IIa study with Evenamide in patients with schizophrenia were presented at the International Congress on Schizophrenia Research
- Newron amended the ongoing STARS study to include Rett syndrome patients under 13 years of age; a poster was presented in the U.S. on the current Burden of Disease Study in Rett syndrome
Stefan Weber, CEO of Newron, commented: “The past six months have been a milestone period for Newron: Xadago® received approval by the FDA and was launched in the U.S., following the introduction into twelve European markets, offering an important new treatment option for the Parkinson’s community. Our pipeline products Evenamide and Sarizotan have also made good progress during the period and we are excited about their potential as we move into 2018 and beyond.”
Xadago® now available in the U.S.
Xadago®
for Parkinson’s disease received formal approval in the U.S. in March.
Post-period, Newron announced that Xadago® is now available
in the U.S. as an add-on therapy for patients with Parkinson’s disease
currently taking levodopa/carbidopa and experiencing so-called “OFF”
episodes. As a result of the US approval, the Company received EUR 11.3
million milestone payments from its partner Zambon.
Newron and its partner Zambon, together with academic and regulatory experts, are in the process of designing a potentially pivotal efficacy study to evaluate the effects of safinamide in patients with levodopa induced dyskinesia (PD LID). The study design, based upon previously reported clinical and pre-clinical data for PD LID, will be discussed with regulators in the European Union and the USA. The study is expected to start in 2018.
Further to the US launch, in April, Zambon launched Xadago® in Portugal. During this period, Zambon also entered into partnerships with Seqirus in Australia and New Zealand and with Valeo Pharma in Canada. Seqirus will undertake registration and commercialization of Xadago® in Australia and New Zealand, and in Canada, Valeo Pharma will be responsible for all regulatory, sales and marketing, quality, and distribution activities. Newron’s partner in Asia, Meiji Seika, entered into a collaboration with Eisai for the development and commercialization of Xadago® in Japan and Asia.
Encouraging progress with Evenamide
The period has also seen
great progress for the other products in Newron’s portfolio, including
Evenamide. Encouraging preliminary results of a phase IIa study were
released in January, which was followed by more detailed results in
March, presented at the 16th International Congress on Schizophrenia
Research, in San Diego. The results of the study indicate that Evenamide
improved symptoms of psychosis compared with placebo when added to two
of the most commonly prescribed atypical antipsychotics in patients with
chronic schizophrenia.
Ravi Anand, Newron’s CMO, said, “We anticipate conducting an adequate and well-controlled study to demonstrate efficacy and safety/tolerability of fixed doses of Evenamide as add-on to second generation antipsychotics in patients experiencing worsening of symptoms of psychosis. We intend to initiate a global, six-week double-blind, placebo controlled study in the future. Furthermore, an international panel of schizophrenia experts has advised on the development of this compound for a potential orphan indication in Clozapine-treatment-resistant schizophrenia, which imparts a number of relevant advantages, including a potentially faster entry to the market. Feedback on this proposal will be requested during forthcoming meetings with the authorities.”
Study with Sarizotan Amended
Another significant achievement
was announced in May when the FDA approved the amendment of the ongoing
Sarizotan Treatment of Apneas in Rett Syndrome (STARS) study to include
Rett syndrome patients as young as six years of age. The potential
benefits of Sarizotan will now be evaluated in these younger patients
prior to the significant worsening that occurs in these patients’
disease with age. Experts believe that earlier onset of treatment in
Rett’s patients may be associated with less deterioration of respiratory
and neurological symptoms. Newron is working towards completion of
recruitment by the end of 2017 and intends to report top-line results
from the study in 2018.
Newron continues to advance its leadership within the Rett community, notably through the first qualitative study to examine the burden of Rett syndrome on individuals and their caregivers. A poster entitled “Burden of Disease in Rett Syndrome: A Qualitative Analysis” was presented at the ISPOR 22nd Annual International Meeting in May (International Society for Pharmaeconomics and Outcome Research) in the U.S. This poster presented the results of a targeted literature search and preliminary findings from a qualitative interview study aimed at describing the burden of Rett syndrome on individuals and their families.
Financial Highlights
For the first six months of 2017,
Newron shows a net profit of EUR 1.5 million, compared to a loss of EUR
8.8 million in the same period in 2016. Cash used in operating
activities has been reduced from EUR 8.9 million in HY1 2016 to EUR 1.5
million this year. These positive developments are mostly due to the
substantial increase of revenues (EUR 11.7 million versus EUR 3.9
million in HY1 2016), including one-time milestone payments from Zambon
for the US approval of Xadago® and an increase of more than
50% in royalty payments received from Zambon (EUR 1.3 million versus EUR
0.85 million in HY1 2016) due to new countries entered and increased
sales. At the same time, Newron’s R&D expenses have been reduced from
EUR 8.2 million in 2016 to EUR 4.6 million, largely due to the
completion of the Evenamide phase IIa study and Italian R&D tax credits
of EUR 2.1 million that can be offset with future tax and social
contribution payments by Newron. G&A expenses reached EUR 4.4 million in
the first six months of 2017, unchanged from HY1 2016. Cash and short
term investments at June 30, 2017 were at EUR 45.1 million, compared to
EUR 46.5 million at the beginning of the year 2017.
Financial Summary (IFRS)
In EUR thousand (except per
share information)
HY1 2017 | HY1 2016 | |||||
Licence income/Royalties | 11,682 | 3,891 | ||||
Research and development expenses | (4,608) | (8,240) | ||||
General and administrative expenses | (4,448) | (4,402) | ||||
Net profit/loss | 1,542 | (8,754) | ||||
Profit/loss per share - Basic | 0.10 | (0.64) | ||||
Cash used in operating activities | (1,487) | (8,945) | ||||
As of June 30, |
As of Dec. 31, | |||||
Cash and cash equivalents | 40,431 | 42,948 | ||||
Total assets | 57,329 | 56,591 | ||||
Further details and the full financial details are available in Newron’s Half-Year 2017 Report, which is available for download at http://www.newron.com/financial-report-2017.
About Newron Pharmaceuticals
Newron (SIX: NWRN) is a
biopharmaceutical company focused on the development of novel therapies
for patients with diseases of the central and peripheral nervous system.
The Company is headquartered in Bresso near Milan, Italy. Xadago®
(safinamide) has received marketing authorization for the treatment of
Parkinson’s disease in the European Union, Switzerland and the USA, and
is commercialized by Newron’s Partner Zambon. US WorldMeds holds the
commercialization rights in the USA. Meiji Seika has the rights to
develop and commercialize the compound in Japan and other key Asian
territories. In addition to Xadago® for Parkinson’s disease,
Newron has a strong pipeline of promising treatments for rare disease
patients at various stages of clinical development, including sarizotan
for patients with Rett syndrome and ralfinamide for patients with
specific rare pain indications. Newron is also developing Evenamide as
the potential first add-on therapy for the treatment of patients with
positive symptoms of schizophrenia. For more information, please visit: www.newron.com.
Important Notices
This document contains forward-looking
statements, including (without limitation) about (1) Newron’s ability to
develop and expand its business, successfully complete development of
its current product candidates and current and future collaborations for
the development and commercialisation of its product candidates and
reduce costs (including staff costs), (2) the market for drugs to treat
CNS diseases and pain conditions, (3) Newron’s anticipated future
revenues, capital expenditures and financial resources, and (4)
assumptions underlying any such statements. In some cases, these
statements and assumptions can be identified by the fact that they use
words such as “will,” “anticipate,” “estimate,” “expect,” “project,”
“intend,” “plan,” “believe,” “target,” and other words and terms of
similar meaning. All statements, other than historical facts, contained
herein regarding Newron's strategy, goals, plans, future financial
position, projected revenues and costs and prospects are forward-looking
statements. By their very nature, such statements and assumptions
involve inherent risks and uncertainties, both general and specific, and
risks exist that predictions, forecasts, projections and other outcomes
described, assumed or implied therein will not be achieved. Future
events and actual results could differ materially from those set out in,
contemplated by or underlying the forward-looking statements due to a
number of important factors. These factors include (without limitation)
(1) uncertainties in the discovery, development or marketing of
products, including without limitation negative results of clinical
trials or research projects or unexpected side effects, (2) delay or
inability in obtaining regulatory approvals or bringing products to
market, (3) future market acceptance of products, (4) loss of or
inability to obtain adequate protection for intellectual property
rights, (5) inability to raise additional funds, (6) success of existing
and entry into future collaborations and licensing agreements, (7)
litigation, (8) loss of key executive or other employees, (9) adverse
publicity and news coverage, and (10) competition, regulatory,
legislative and judicial developments or changes in market and/or
overall economic conditions. Newron may not actually achieve the plans,
intentions or expectations disclosed in forward-looking statements, and
assumptions underlying any such statements may prove wrong. Investors
should therefore not place undue reliance on them. There can be no
assurance that actual results of Newron's research programmes,
development activities, commercialisation plans, collaborations and
operations will not differ materially from the expectations set out in
such forward-looking statements or underlying assumptions. Newron does
not undertake any obligation to publicly update or revise
forward-looking statements except as may be required by applicable
regulations of the SIX Swiss Exchange, where the shares of Newron are
listed. This announcement is not an offer for sale of securities in the
United States, Canada, Australia or Japan or any other jurisdiction
where such an offer or solicitation would otherwise be unlawful. The
securities referred to herein may not be sold in the United States
absent registration or an exemption from registration under the U.S.
Securities Act of 1933, as amended. Newron does not intend to register
any of its securities in the United States or to conduct a public
offering of its securities in the United States. This document does not
contain or constitute an offer or invitation to purchase or subscribe
for any securities of Newron and no part of this document shall form the
basis of or be relied upon in connection with any contract or commitment
whatsoever.
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