Biotie buys Newron
Turku/ Bresso – It is both good and bad news for the Italian biotechnology sector: Finnish Biotie Therapies ASA has signed an agreement to acquire Newron Pharmaceuticals S.p.A. for €45 million. On the down side, Italy loses one of its most dynamic biopharmaceutical companies but the deal is also a proves that Italian innovative companies are still attractive on a European level.
Biotie wants to create a leading European biopharmaceutical company focused on central nervous system (CNS) drug development. The deal will be effected as a European Union cross-border merger. Biotie will issue Newron shareholders close to 90m initial consideration shares with an option for more if specific milestones are reached. According to Biotie, through the transaction it creates a “deep pipeline”, led by two drugs, nalmefene and safinamide, in Phase 3 development, targeting alcohol dependence and Parkinson’s disease, respectively. Timo Veromaa, President and CEO of Biotie, is particularly excited about safinamide, “a compelling late-stage asset with potential for significant near-term milestones”. In the short-term, Biotie hopes to cash in on two other substances for the CNS market.