Newron's 2006 net loss widens to $22M

Milan, Italy-based drugmaker Newron Pharmaceuticals SpA says that its net loss for the year worsened to 16.4 million euros ($21.9 million) from 14.9 million euros in 2005, despite the fact that the cash used in operations fell from 14.6 million euros to 11.0 million euros. This was due mainly to the downpayment received from German-Swiss drug major Merck Serono for the licensing of safinamide, its lead compound, a drug for Parkinson's disease which is currently in Phase III trials.

In 2006, R&D expenses totalled 11.5 million euros versus 10.6 million, mostly due to increased investments in its safinamide trial which, as of September 22, 2006, were covered by its partner. Newron's 2006 spending and net loss exceeded Lehman Brothers' expectations but the firm assumes a 60% likelihood of a positive outcome from the Phase III trial of safinamide and predicts that Merck Serono will launch the drug in the first half of 2010, with peak annual sales of $600.0 million in 2015. Analysts at the firm reiterated their 1-overweight rating on Newron.