Flurry of M&A activity in Europe, with takeovers for NeuroNova and Proximagen

This morning saw a flurry of acquisition announcements by pharma companies. First up, Italy’s Newron Pharmaceuticals (SIX: NWRN) revealed that it has signed an agreement with the key shareholders of Stockholm-based privately-owned NeuroNova for the acquisition of up to 100% of its shares, in an all-share transaction valuing NeuroNova at 15.4 million euros ($19.2 million) at closing share price June 11, 2012).

The transaction adds two highly innovative Phase II compounds from NeuroNova to Newron’s central nervous system (CNS) portfolio. NeuroNova, founded by scientists from Karolinska Institutet, has extensive experience in the field of neurogenesis.

At closing of the transaction, Newron –itself the subject of a failed proposed 45 million-euro million) acquisition by Finnish biotech firm Biotie (OMX: BTH1V; The Pharma Letter October 28, 2011) - will benefit by cash and commitments of up to 16 million. These funds are sufficient to provide for a Phase II proof-of-concept study in Parkinson’s disease, as well a Phase I/II study in amyotrophic lateral sclerosis (ALS), in addition to the related corporate operations. Investor and HealthCap, holders of more than 90% of NeuroNova’s total shares, will become shareholders in Newron and each may nominate a representative to Newron’s board of directors. The transaction is conditional on the approvals under Italian law, including an independent appraisal, and approval by Newron’s shareholders. It is expected to close in August 2012.