Newron Pharmaceuticals Announce IPO Launched

Milan, Italy – November 27, 2006 - Newron Pharmaceuticals SpA, a biopharmaceutical company focused on the research, develop­ment and future commercialisation of novel drugs for the treatment of Central Nervous System (CNS), today launched its initial public offering (IPO) and listing on the SWX Swiss Exchange. Following a capital increase, up to 2,147,606 primary shares will be placed. An addi­tional up to 322,141 primary shares may be placed if the over-allot­ment option is exercised within 30 days following the day the shares begin trading on the SWX Swiss Exchange. The price range per share being offered will be between CHF 45 and CHF 60. If all 2,147,606 shares are placed, the free float after the listing is expected to reach 36.9% and the market capitalisation approximately CHF 262m to CHF 349m (free float of 40.2% and a market capita­li­sa­tion of approximately CHF 276m to CHF 369m if the over-allot­ment option is fully exercised).

The offering consists of a public offering in Switzerland and an offe­ring to institutional investors outside Switzerland in reliance on exemptions from registration under the U.S. Securities Act. Bookbuilding is expected to commence on Novem­­ber 27 and to be conclu­ded on December 7, with the offer price expected to be public­shed on December 8. Due to Italian legal procedures trading on the main segment of the SWX Swiss Exchange is scheduled to begin at 11a.m. on December 12.

Lehman Brothers International (Europe) and Morgan Stanley & Co. International Limited are joint global coordinators and joint book-runners for the offering. Bank Vontobel and Sal. Oppenheim are co-lead managers. Newron, its current shareholders and members of its management have agreed to certain lockups ranging from 9 to 12 months.

Luca Benatti, CEO of Newron, comments: “We are proud and delighted to present Newron as a new investment opportunity. Newron aims to become a fully integrated bio-pharma­ceu­tical com­pany focused on the disco­very, development and commer­cia­li­sa­tion of drugs for the treatment of CNS-related diseases and pain.”

Newron intends to use the net proceeds received from the Offer primarily for product development purposes including supporting ongoing and new clinical development and research programmes; licensing or acquiring new products or technologies should such oppor­tu­nities arise; investing in co-promotion rights; beginning to develop a specialised sales and marketing force for its CNS product candidates; and operating expenses and general corporate purposes.

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, particularly Parkinson’s disease (PD) and pain. Newron is undertaking phase III trials with safinamide, a unique molecule with multiple mechanisms of action, for the treatment of PD in conjunction with its partner, Serono S.A. which has the rights to develop the compound in PD, Alzheimer’s disease, and other cognitive disorders. Recent results of a six-month phase III trial of safinamide in PD demonstrated its benefit in motor symptoms and activities of daily living, as well as its improvement in cognitive function and good tolerability. Newron and Serono are planning to expand the develop­ment of safinamide to exploit its potential in Alzheimer’s disease. Phase II trials with safinamide in Restless Legs Syndrome have shown promising results. Newron is also conducting phase II trials with ralfinamide for the treatment of neuropathic pain. The drug has potential benefit in inflammatory pain, as well. Newron’s clinical pipeline is supported by a portfolio of early-stage proprietary compounds generated by its ion channel drug discovery platform. Newron is headquartered in Bresso, near Milan, Italy.

For more information, contact: Dr. Luca Benatti Julia Phillips CEO Financial Dynamics Newron Pharmaceuticals Tel: +44 20 7269 7187 Tel: +39 02 610 34 604