Newron Pharmaceuticals Has Signed a Strategic Collaboration

Newron Pharmaceuticals has signed a strategic collaboration and licence agreement with Zambon Company for Safinamide in the EU and US.

As per the agreement, Zambon will initially invest €20m into Newron, covering the completion of safinamide's clinical development and the preparation of the application for marketing approval in Europe and the US.

The compound is presently in Phase III development as an add-on therapy to dopamine agonists and levodopa in patients with Parkinson's disease.

Zambon will pay an undisclosed amount to Newron for exclusive license option for safinamide covering its research, development, manufacturing and marketing, which expires by the end of April 2012.

With the exercise of the option, Zambon will provide Newron with a down payment and meet the costs for Newron to complete the development of safinamide, prepare applications and file for approvals in Europe and the US.

Zambon will qualify for one seat in the board of directors of Newron, up on the exercise of option.

Newron is eligible to receive significant success based regulatory milestone payments as well as double digit royalty payments on future sales. The rights to safinamide will be returned to Newron by Merck Serono on 17April 2012.

Zambon CEO Roberto Consonni said: "We trust in Newron's extensive CNS expertise to take this compound forward and, as Zambon, we are prepared to enter and develop this important therapeutic area of chronic disease in our pharma strategy."