The Danish biopharmaceutical company NeuroSearch A/S has signed a conditional agreement to acquire A. Carlsson Research AB - one of Sweden's leading biopharmaceutical companies within discovery and development of drugs for the treatment of diseases in the central nervous system (CNS).

The agreed consideration amounts to SEK 875 million whereof SEK 250 million is to be paid upfront and SEK 625 million is to be paid in connection with the successful attainment of agreed development milestones, a Carlsson Research release said.

"Since inception, we have proven our ability to efficiently generate truly novel candidate drugs for the treatment of CNS disorders," said Nicholas Waters, CEO Carlsson Research AB. "As part of NeuroSearch, Carlsson Research programmes will be added significant scientific resources and the financial strength necessary to fully exploit the medical, and thereby commercial, potential of our products, which is of great interest for all Carlsson Research stakeholders."

"Carlsson Research is a company which successfully has managed the transition from high profile and innovative academic research to the creation of a successful commercial drug discovery company", said Jonas Frick, Board Member of Carlsson Research and CEO of Carlsson Research's largest shareholder, Scandinavian Life Science Venture (SLS). "We are confident that the combination of Carlsson Research and NeuroSearch will ensure that the innovations of Carlsson Research are commercialised in the best possible way and that the new company becomes a strong and exiting actor in the CNS field".

The agreed consideration consists of an initial payment of SEK 250 million and up to SEK 625 million of future payments to be made over a period of time in connection with the successful attainment of agreed clinical milestones relating to Carlsson Research's development programmes. The acquisition of Carlsson Research is conditional, inter alia, upon a share offering being made by NeuroSearch.

Following the acquisition, Carlsson Research will operate as a fully owned subsidiary of NeuroSearch A/S and will change its name to NeuroSearch AB. The company will continue its current operations and will be under the management of Dr. Nicholas Waters, who will also become a member of NeuroSearch's management group.