Milan, Italy, December 22, 2010 – Newron Pharmaceuticals S.p.A. (“Newron”), a research and development company focused on novel CNS and pain therapies, announced today that it has raised CHF3.5m through a private placement to Great Point Partners, LLC.
The subscription price was set at CHF5.25 per share, representing a 3.7 % discount to the closing price of Newron’s shares on 16 December 2010 of CHF5.45. The proceeds will be used to further capitalise the Company and fund its advancing pipeline development and clinical trials.
Luca Benatti, CEO, commented, “We are very pleased with the support of another high quality and supportive institutional investor. The funds will enable us to further develop our pipeline, whilst continuing to look at value-added partnering and M&A opportunities. Alongside, we are working hard with our partner Merck Serono in concluding the clinical trials of safinamide to enable regulatory filing in Parkinson’s disease, as planned.
The new shares will represent 10.0% of the Company’s total share capital before and 9.1% of the total share capital after the issuance. Closing of the transaction will be subject to customary Italian and Swiss regulatory requirements. Newron has applied for and approval has been given by the SIX Swiss Exchange, subject to certain conditions, for the listing of the new shares. The new shares are listed and traded on the SIX Swiss Exchange under the same ISIN as with the Company’s existing shares (ISIN:IT0004147952) on or about 21 December 2010.
MTS Securities, LLC served as financial advisor to the company in the transaction.
About Newron Pharmaceuticals
Newron Pharmaceuticals S.p.A. (www.newron.com) is a biopharmaceutical company focused on novel therapies for diseases of the Central Nervous System and pain. Newron is undertaking phase III trials with safinamide for the treatment of Parkinson’s disease (PD) in conjunction with its partner, Merck Serono, which has exclusive worldwide rights to develop, manufacture and commercialize the compound in PD, Alzheimer’s disease, and other therapeutic applications. Newron is currently evaluating the further clinical development of ralfinamide for pain and psychiatric diseases. Newron’s additional projects are at various stages of preclinical and clinical development, including HF0220 for neuroprotection and NW-3509 for the treatment of schizophrenia. Newron is headquartered in Bresso, near Milan, Italy. The company is listed at SIX Swiss Exchange, trading symbol NWRN.
About Great Point Partners
Great Point Partners, LLC ("Great Point") is a leading health care investment firm based in Greenwich, Connecticut. Great Point manages multiple investment funds; all focused on helping best of breed health care companies grow. Great Point's funds are dedicated to both public and private companies in the United States, Canada, and Western Europe. Since 2003, Great Point has invested over $1 billion into over 100 companies in support of the health care industry
For more information, contact:
Media Investors and analysts
Luca Benatti - CEO
Phone: +39 02 6103 4 626
Phone: +44 (0) 20 7269 7187
Phone: +41 43 244 81 40
Stefan Weber - CFO
Phone: +39 02 6103 46 30
This document contains forward-looking statements, including (without limitation) about (1) Newron’s ability to develop and expand its business, successfully complete development of its current product candidates and current and future collaborations for the development and commercialisation of its product candidates and reduce costs (including staff costs), (2) the market for drugs to treat CNS diseases and pain conditions, (3) Newron’s anticipated future revenues, capital expenditures and financial resources, and (4) assumptions underlying any such statements. In some cases these statements and assumptions can be identified by the fact that they use words such as “will”, “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “target”, and other words and terms of similar meaning. All statements, other than historical facts, contained herein regarding Newron's strategy, goals, plans, future financial position, projected revenues and costs and prospects are forward-looking statements.
By their very nature, such statements and assumptions involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described, assumed or implied therein will not be achieved. Future events and actual results could differ materially from those set out in, contemplated by or underlying the forward-looking statements due to a number of important factors. These factors include (without limitation) (1) uncertainties in the discovery, development or marketing of products, including without limitation negative results of clinical trials or research projects or unexpected side effects, (2) delay or inability in obtaining regulatory approvals or bringing products to market, (3) future market acceptance of products, (4) loss of or inability to obtain adequate protection for intellectual property rights, (5) inability to raise additional funds, (6) success of existing and entry into future collaborations and licensing agreements, (7) litigation, (8) loss of key executive or other employees, (9) adverse publicity and news coverage, and (10) competition, regulatory, legislative and judicial developments or changes in market and/or overall economic conditions.
Newron may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements and assumptions underlying any such statements may prove wrong. Investors should therefore not place undue reliance on them. There can be no assurance that actual results of Newron's research programmes, development activities, commercialisation plans, collaborations and operations will not differ materially from the expectations set out in such forward-looking statements or underlying assumptions.
Newron does not undertake any obligation to publicly up-date or revise forward looking statements except as may be required by applicable regulations of the SIX Swiss Exchange where the shares of Newron are listed.
This document does not contain or constitute an offer or invitation to purchase or subscribe for any securities of Newron and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
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