Zambon invests in Newron as part of safinamide deal
Newron Pharmaceuticals S.p.A. (SIX:NWRN) jumped CHF0.65 (18%) to CHF4.28 on Thursday after Zambon Co. S.p.A. (Bresso, Italy) agreed to acquire a 9.1% stake in the neurology company as part of an option deal for Parkinson's disease therapy safinamide. Zambon will purchase 726,435 Newron shares, valued at about CHF3 million ($3.3 million) based on Newron's Thursday close. Zambon also will pay an undisclosed sum in exchange for an exclusive option to license rights to safinamide worldwide, excluding Asian territories where Meiji Seika Pharma Co. Ltd. (Tokyo, Japan) has rights. Upon exercise of the option, which expires by the end of the month, Zambon would pay Newron an undisclosed payment and cover all development and regulatory costs in the territories. Zambon would also qualify for one seat on Newron's board if it exercises the option. Additionally, Newron would be eligible for regulatory milestones, plus double-digit royalties. ...