Newron's loss worsens on spiralling R&D

Newron Pharmaceuticals, an Italian company focused on novel central nervous system and pain therapies, has posted a worsened loss of 7.3 million euros ($10.4 million), or 1.24 euros per share, in the first six months of 2008 versus 4.0 million euros, or 0.68 euros per share, in the same period of 2007 due to increased R&D expenditure on its new pipeline products.

Revenues were almost flat at 2.0 million euros vs 2.1 million euros, comprising license income down to 1.3 million euros vs 2.2 million euros, and vastly increased other income of 737,000 euros vs 33,000 euros. The firm's cash and cash equivalents stand at 57.0 million euros vs 69.5 million euros at the same time last year.

R&D expenses almost doubled during the period to 5.1 million euros vs 2.8 million euros, mainly due to costs for neuropathic pain candidate NW3509 (ralfinamide; Marketletter April 28), as well as compounds inherited from UK firm Hunter-Fleming (Marketletter June 16), which Newron acquired in May. A 1.3 million-euro cost for Hunter-Fleming is included in the results, along with, for the first time, revenue and expenses from new Swiss subsidiary Newron Suisse.