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 â‚¬15.4m.
The transaction adds two Phase II compounds from NeuroNova to Newronâ€™s CNS portfolio.
NeuroNova, founded by scientists from Karolinska Institutet, has extensive experience in the field of neurogenesis. The companyâ€™s sNN0031 and sNN0029 compounds generate new progenitor cells and protect existing neurons, benefitting patients with progressive neurodegenerative disorders such as Parkinsonâ€™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 NeuroNovaâ€™s shares, will become shareholders in Newron.
The deal is conditional on the approvals under Italian law, including an independent appraisal, and approval by Newronâ€™s shareholders. It is expected to close in August.
NeuroNovaâ€™s development activities will continue under Anders Haegerstrand, currently chief scientific officer at NeuroNova.
Stefan Weber, Newronâ€™s ceo, said: â€˜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.â€™
Ulf Ljungberg, president and ceo of NeuroNova, added: â€˜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 Newronâ€™s advanced PD treatment, safinamide, clinical development experience and the resources of a publicly listed entity.
â€˜This is a strong platform on which to build the critical mass this industry is looking for.â€™