Newron Pharmaceuticals S.p.A, a research and development company focused on novel Central Nervous System (CNS) and pain therapies, has acquired Hunter-Fleming Ltd, a private UK biopharmaceutical company developing new medicines to treat neurodegenerative and inflammatory disorders.

The acquisition, aimed to enlarge Newron's clinical-stage pipeline, particularly in the area of neuro-inflammation, is subject to shareholder approval and is expected to close in April.

The agreement provides for the acquisition of 100% of the issued share capital of Hunter-Fleming. Newron will make an upfront payment of € 8m, minus net debt, for the 2/3 fully diluted share capital of Hunter-Fleming, in newl y issued Newron shares. In addition, success-based milestones related to the Hunter-Fleming programs will be made up to a maximum of € 17m, in newly issued Newron shares.

Newron will also acquire an equity holding in a Special Purpose Vehicle (SPV) set-up to develop a late preclinical compound in asthma. In addition, Newron will benefit from a team of professionals with significant pharmaceutical industry and neuro-inflammation development experience.

Dr. Luca Benatti, CEO, Newron said: "Hunter-Fleming represents an excellent opportunity for Newron to expand its late-stage development pipeline, a key element of our strategy for growth. It also enables us to expand our CNS expertise into the area of neuro-inflammation thus broadening our overall CNS knowledge. We are impressed by the quality of Hunter-Fleming's development compounds, particularly the novelty of HF0220 which could rapidly progress to proof-of-concept trials."

Dr. Mike Capaldi, CEO, Hunter-Fleming, said: "We have a very experienced and talented team who, over the past eight years, have developed a valuable portfolio of compounds. We see this agreement as a fantastic opportunity for realizing the potential of this portfolio within Newron."