Newron picks up Neuronova AB
14.06.2012 - Italian neuroscience specialist Newron Pharmaceuticals S.p.A. acquires the Stockholm-based Neuronova AB in a deal worth €15.4m
Bresso/Stockholm – The transaction will add two new Phase II compounds from NeuroNova to Newron’s CNS portfolio. sNN0031 is a novel drug candidate for the treatment of moderate to severe stage Parkinson’s disease (PD) that is designed to act on neural stem and progenitor cells in the brain. In a Phase I/II trial in patients with PD, the active ingredient platelet-derived growth factor BB demonstrated preliminary beneficial effects on biochemical markers of the degenerating dopamine system in PD patients. The second compound, sNN0029 with the active ingredient vascular endothelial growth factor, is intended for the treatment of amyotrophic lateral sclerosis (ALS) and is currently evaluated in a Phase I/II trial.
At the transaction close, Newron will benefit by cash and commitments of up to €16m. These funds are sufficient to provide for a Phase II study in PD as well as the ongoing Phase I/II study in ALS, in addition to the related corporate operations. The biggest investors in Neuronova, Investor and Healthcap, will also take a stake in Newron. Both will send a representative to the Milan-based company’s board of directors. At closing of the deal, the Neuronova shareholders will represent a holding of 33% in Newron’s share capital. For them, the transaction is a bid on the positive development of NeuroNova’s compounds. “We value Newron’s expertise in taking compounds from clinical stages to regulatory filing, and support the concept of building a European CNS player that could benefit both patients and our stakeholders”, stated Jakob Lindberg from Investor. “It is the logical next step to NeuroNova to combine our advanced pipeline and know-how, originally stemming from research at Karolinska Institute and developed by our team in the recent years, with a larger player in the CNS field”, added Ulf Ljungberg, President and CEO of NeuroNova, stating that the combined product portfolio represents “a strong platform on which to build the critical mass this industry is looking for.”