Newron opens door to pain pact with trial launch

Switzerland's Newron Pharmaceuticals has launched a mid- to late-stage trial for its lower back pain drug ralfinamide. And analysts note that the trial launch positions Newron to ink a significant new licensing deal for the drug.

Helvea's Luc Otten says that a variety of big players in the pain field--including GlaxoSmithKline, AstraZeneca and Pfizer--could all make a bid for the therapy. He estimates peak sales after an approval at $821 million annually.

Dow Jones notes that Newron's shares have slid 73 percent this year as investors steer clear of high-risk companies. Newron's pain drug is second among its leading drug programs.

- read the report from Dow Jones