Newron executes safinamide deal with Zambon; new Ph III data; management changes

In what was a busy news day for Italian drug developer Newron Pharmaceuticals SpA (SIX: NWRN), the company has updated on its licensing deal with fellow Italy-based Zambon, presented new data on its Parkinson’s disease drug candidate safinamide, rights to which had previously been vested in Merck Serono which returned them last year (The Pharma Letters October 24, 2011, and April 9, 2012), and announced the departure of its chief executive.

Newron said that it has executed a previously announced strategic collaboration with Zambon lead compound safinamide. In aggregate, the total Zambon investment in Newron will be 20 million euros ($25.8 million) also covering the completion of safinamide’s clinical development and the preparation of the application for marketing approval in Europe and the USA.

Zambon has already made an investment of 5 million euros in Newron equity and an option fee. In addition, Zambon will make a down-payment to Newron of 5 million euros for the agreement that has now been executed, covering the license for safinamide research, development, manufacturing and marketing in all territories of the world with the exclusion of those covered by the recently announced license agreement with Meiji Seika Pharma (Japan and key Asian territories). Furthermore Zambon will meet the costs incurred by Newron to complete the development of safinamide and prepare the applications and file for marketing approval in Europe and the USA.