Newron loss deepens on high R&D costs

Newron Pharmaceuticals, an Italian R&D company focused on novel central nervous system and pain therapies, reported a 48% year-on-year increase  in its 2008 loss, on further-spiralling R&D costs and falling sales

The firm generated 3.9 million euros ($5.1 million) in revenue, down 4%.  The majority of this came from a straight-line write-down of a 2006  upfront payment from Merck Serono for the licensing of Parkinson's  disease treatment safinamide. R&D costs were up 52% to 12.9 million  euros due to the initiation of a Phase IIb/III trial of pain drug  ralfinamide and various programs acquired along with privately-owned UK  biopharmaceutical firm Hunter-Fleming (Marketletter June 16, 2008).

The company's net loss worsened to 16.4 million euros, or 2.74 euros  loss per share, versus a loss of 11.1 million euros, or 1.90 euros loss  per share. As of December 31, 2008, the firm had 41.3 million euros in  cash and cash equivalents, down 35%.