Gains two Phase II compounds for progressive neurogenerative diseases
Newron Pharmaceuticals, an Italian biopharmaceutical firm, is to acquire NeuroNova, based in Stockholm, Sweden, for around €15.4m.
The transaction adds two Phase II compounds from NeuroNova to Newron’s CNS portfolio.
NeuroNova, founded by scientists from Karolinska Institutet, has extensive experience in the field of neurogenesis. The company’s sNN0031 and sNN0029 compounds generate new progenitor cells and protect existing neurons, benefitting patients with progressive neurodegenerative disorders such as Parkinson’s disease (PD) and amyotrophic lateral sclerosis (ALS).
At closure, Newron will benefit by up to b16m, which will provide for a Phase II PoC study in PD as well a Phase I/II study in ALS.
Investor and HealthCap, holders of more than 90% of NeuroNova’s shares, will become shareholders in Newron.
The deal is conditional on the approvals under Italian law, including an independent appraisal, and approval by Newron’s shareholders. It is expected to close in August.
NeuroNova’s development activities will continue under Anders Haegerstrand, currently chief scientific officer at NeuroNova.
Stefan Weber, Newron’s ceo, said: ‘This transaction brings together global development expertise, a new generation of compounds that could alter the treatment of neurodegenerative disorders, material funding and two leading investors in a company listed on one of the leading life science stock exchanges.’
Ulf Ljungberg, president and ceo of NeuroNova, added: ‘It is the logical next step to NeuroNova to combine our advanced pipeline and know-how, originally stemming from research at Karolinska Institutet and developed by our team in the recent years, with a larger player in the CNS field, adding to Newron’s advanced PD treatment, safinamide, clinical development experience and the resources of a publicly listed entity.
‘This is a strong platform on which to build the critical mass this industry is looking for.’