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EIB backs Italian CNS drug developer Newron Pharmaceuticals with up to EUR 40m

Staff Writer |
The European Investment Bank (EIB) and Newron Pharmaceuticals signed a financing agreement today, which will allow the Company to borrow up to EUR 40 million over the coming years, subject to achieving a set of agreed performance criteria.

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This EIB loan is backed by the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe, the Juncker Plan.

Newron aims to build a leading Central Nervous System (CNS) company that searches, develops and commercializes innovative drugs, with a special focus on rare diseases.

The company’s first product developed in-house, Xadago® (safinamide), is the first New Chemical Entity in a decade approved in Europe and the U.S. for the treatment of Parkinson’s disease (PD). The product is commercialized in a number of European markets as well as in the USA and the Company’s partners Zambon and Meiji Seika Pharma are working towards global approval.

Newron has two advanced product candidates in late stage clinical development: Sarizotan for the treatment of respiratory disturbances in Rett syndrome, which is evaluated in the ongoing potentially pivotal STARS (Sarizotan Treatment of Apneas in Rett Syndrome) study, and Evenamide as an add-on therapy for the treatment of certain symptoms of schizophrenia, with the additional potential to improve the life of patients who are treatment resistant to Clozapine.

Newron plans to directly market orphan or orphan like drugs emerging of its innovative clinical pipeline, and to consider partner opportunities directed at larger markets when offering the best return to Newron’s shareholders.

EIB financing is intended to boost Newron’s R&D activities and will primarily be used to support the Company’s pivotal and post approval stage development programs in diseases of the central nervous system.

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