download PDF - Newron

Notes to the Consolidated
Financial Statements
(In thousand euro unless otherwise stated)
1 General information
Newron Group (the Group) is composed of the following
entities:
• Newron Pharmaceuticals S.p.A. (the Company), a
clinical-stage biopharmaceutical company focused
on the discovery and development of drugs for the
treatment of Central Nervous System (CNS) disorders
and pain – the parent company;
• Newron Suisse SA, a clinical-development fully
owned subsidiary based in Basel (Switzerland) established
during 2007;
• Hunter-Fleming Limited, a private biopharmaceutical
company based in Bristol (United Kingdom) and
focused on neurodegenerative and inflammatory
disorders, which has been acquired in 2008.
The Company is incorporated and domiciled in Milan,
Italy. The address of its registered office is via
Ludovico Ariosto 21, Bresso MI 20091, Italy. The Company
is listed on the main segment of the SIX Swiss
Exchange, Zurich, Switzerland, under the trade name
NWRN.
These consolidated financial statements have been
approved for issuance by the Board of Directors on
May 25, 2012, as the Company applied to SIX Swiss
Exchange for an extension to the period of the disclosure
of its Annual Report 2011 to May 31, 2012, which
was granted by SIX Swiss Exchange, on February 27,
2012. This procedure is also allowed by Italian Civil
Code, as stated by the article 2364. The extension was
granted to Newron in order to allow the inclusion in
the Annual Report of the relevant disclosure related
to the material events around its lead compound safinamide,
which is currently in the final stages of clinical
development and could progress towards regulatory
filing in the US and Europe, once the results of
the ongoing MOTION and SETTLE clinical Phase III
studies have been reported. For additional information
please refer to note 31 Events after the balance
sheet date.
2 Summary of significant accounting policies
The consolidated financial statements of the Group
have been prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB). The
principal accounting policies applied in the preparation
of these consolidated financial statements are set out
below. These policies have been consistently applied to
all the years presented, unless otherwise stated.
A Basis of preparation
The consolidated financial statements are based on
the financial statements of the individual Group companies
prepared for the same reporting period using
consistent accounting policies. The financial statements
have been prepared under the historical cost
convention, as modified by financial assets and liabilities
at fair value as described in the notes.
The presentation currency is euro. All figures included
in these financial statements and notes to the financial
statements are rounded to the nearest euro thousand
except as otherwise stated.
Since its inception, the Group has incurred significant
costs for the funding of its research and development
activities without generating revenues to sustain them.
Group’s liquidity requirements arise primarily from
the need to fund its ongoing research and development
activities and, although the results of research are
substantially positive, it is not certain that the research
and development activities will lead to the introduction
of new products to the market. Historic ally, Newron
has primarily used capital contributions from shareholders,
and limited government grants and loans, to
finance the cash needs of its continuing development
activities.
Considering the Group’s current cash position and
the level of spending according to management’s plan
and budgets, the directors believe the Group will be
able to meet all of its obligations at least for a further
12 months as they fall due and, hence, the consolidated
financial statements have been prepared on a going
concern basis.
44 Newron Annual Report 2011