Biotie to buy Newron for 45 million euros, creating a European leader in CNS drug development

In a second acquisition this year, Finland-based biotech company Biotie Therapies (OMX: BTH1V) has entered into an agreement to buy Italy’s Newron Pharmaceuticals (SIX: NWRN) in a deal valued at 45 million euros ($60.8 million). The transaction is still subject inter alia to the approval by the extraordinary general meeting of Newron expected to be convened at the end of October 2011.

The news saw Newron’s share leap 24.5% to 5.33 Swiss francs in morning trading, while Biotie gained 7.1% to 0.45 euros.

The deal will be effected as a European Union cross-border merger. Biotie will issue Newron shareholders up to 89,108,147 in initial consideration shares. There is also the possibility of additional contingent consideration consisting of options and a receivable to be used to pay the subscription price for shares subscribed based on such options.