Newron acquires Hunter-Fleming to expand CNS development pipeline

Newron Pharmaceuticals, based near Milan in Italy, has acquired Hunter-Fleming Ltd, a private UK biopharmaceutical company developing new medicines to treat neurodegenerative and inflammatory disorders.

Newron is an r&d company focused on novel CNS and pain therapies, and the acquisition of Hunter-Fleming enlarges its clinical-stage pipeline, particularly in the area of neuro-inflammation.

Hunter-Fleming provides a pipeline of three compounds in various phases of clinical development and one in discovery:

• HF0220: a broad spectrum neuroprotective agent with an ongoing phase II safety and tolerability study exploring biological markers in patients with Alzheimer's disease; a phase II study in rheumatoid arthritis to be initiated in late 2008;
• HF0420: a low molecular weight oligosaccharide in phase I for prevention of anti-cancer therapy induced neuropathy;
• HF0299: a naturally occurring human steroid in phase I with potential in the treatment of neuropathic pain; and
• HF1220: a second generation neuroprotective compound series in discovery phase.

Newron will also acquire an equity holding in a Special Purpose Vehicle (SPV) set-up to develop a late preclinical compound in asthma.

The agreement provides for the acquisition of 100% of the issued share capital of Hunter-Fleming. Newron will make an upfront payment of Euro 8m (£6m), minus net debt, for the fully diluted share capital of Hunter-Fleming, in newly issued Newron shares. In addition, success-based milestones related to the Hunter-Fleming programs will be made up to a maximum of €17m (£12.7m), in newly issued Newron shares. The acquisition is subject to shareholder approval and is expected to close in April.

"Hunter-Fleming represents an excellent opportunity for Newron to expand its late-stage development pipeline, a key element of our strategy for growth. It also enables us to expand our CNS expertise into the area of neuro-inflammation thus broadening our overall CNS knowledge," said Dr Luca Benatti, Newron's ceo. "We are impressed by the quality of Hunter-Fleming's development compounds, particularly the novelty of HF0220, which could rapidly progress to proof-of-concept trials."