Milestones for success of CNS candidates could total over $24 million.
Newron Pharmaceuticals, which is focused on CNS and pain therapies, will acquire Hunter-Fleming, a U.K. biopharmaceutical company developing new medicines to treat neurodegenerative and inflammatory disorders.
The agreement provides for the acquisition of 100% of the issued share capital of Hunter-Fleming. Newron will make an upfront payment of €8 million ($11.6 million), minus net debt, for the 2/3 fully diluted share capital of Hunter-Fleming, in newly issued Newron shares. In addition, success-based milestones related to the Hunter-Fleming programs will be made up to a maximum of €17 million ($24.65 million).
The acquisition of Hunter-Fleming enlarges Newron’s clinical-stage pipeline, particularly in the area of neuroinflammation. Hunter-Fleming has three compounds in various phases of clinical development and one in discovery.
HF0220 is a broad-spectrum neuroprotective agent with an ongoing Phase II safety and tolerability study exploring biological markers in patients with Alzheimer’s disease, a Phase II study in rheumatoid arthritis will be initiated in late 2008. HF0420 is a low molecular weight oligosaccharide in Phase I for prevention of anticancer therapy-induced neuropathy. HF0299 is a naturally occurring human steroid in Phase I with potential for the treatment of neuropathic pain, and HF1220 is a second-generation neuroprotective compound series in the discovery phase.
