Newron gets two drugs from Merck Serono under broader CNS collaboration

Italy’s Newron Pharmaceuticals (SIX: NWRN) has entered into an agreement that broadens the scope of its collaboration with Merck Serono, a division of German drug major Merck KGaA (MRK: DE). Newron’s shares jumped 3.9% to 6.70 Swiss francs on the news. The two companies are already collaborating on the development of safinamide in Parkinson’s disease.

Under the terms of the new deal, Newron will receive a development license for two Merck clinical-stage compounds, pruvanserin and sarizotan. Merck will retain buy-back options for each compound upon completion of proof of concept trials. Should these options be exercised by Merck, Newron will have a co-development option. Financial terms of the accord are not disclosed.

Pruvanserin and sarizotan are highly selective compounds for specific serotonin or dopamine receptors and modulate the activity of these neurotransmitters in the brain. Both compounds exhibit pharmacological properties and have clinical data that support further evaluation and development. Newron will assess the potential of these compounds in additional preclinical experiments prior to initiating proof of concept studies in central nervous systems (CNS) diseases.