Newron's FY 2007 net loss narrows to $17M

Italinm drugmaker Newron Pharmaceuticals' full-year 2007 net loss narrowed to 11.1 million euros ($17.0 million), or 1.90 euros per share, from 16.4 million euros, or 4.33 euros per share, the year before, as financial income increased to 2.6 million euros from 351,000 euros.

During the period, operating loss improved to 13.7 million euros from 16.7 million euros, as licensing income reached 4.0 million euros from 1.2 million euros. Looking ahead to full-year 2008, the firm predicts that cash used in operating activities will be 25.0 million euros assuming the completion of its recent acquisition of Hunter-Fleming, a privately-held UK biopharmaceutical company developing new medicines to treat neurodegenerative and inflammatory disorders (Marketletter February 18).

Luca Benatti, Newron's chief executive, commented: "2007 was a year of excellent progress in our development programs. The achievements with safinamide in Parkinson's disease and ralfinamide in neuropathic pain further increase the value of these two important assets." At the end of February, Newron completed enrollment in a Phase II study with its lead drug candidate ralfinamide in post-surgical (dental) pain. Lehman Brothers analysts said that Newron's 2007 results were in line with its predictions, noting that the next big catalyst will be two sets of ralfinamide data expected in April, which could boost its value 8%. They maintained their 1-overweight rating.