OREANDA-NEWS. Newron Pharmaceuticals S.p.A. (“Newron”), a research and development company focused on novel CNS and pain therapies, announces that it has completed a private placement of 209,364 shares with a leading US-based biotechnology and healthcare specialist fund, raising gross proceeds of 5.4 million USD/CHF.

The subscription price was set at CHF 25.60 per share. Under the agreement, the fund holds an option to subscribe to another 209,364 newly issued shares no later than June 30, 2016, governed by the March 24, 2015 EGM authorization.

“The investment by this specialized institutional fund is a strong validation of our strategy to advance innovative CNS therapies for rare diseases where there are limited or no viable treatment options,” said Stefan Weber, CEO of Newron. “The proceeds will accelerate the advancement of the recently announced planned international pivotal trial with sarizotan for the treatment of patients with Rett syndrome.”

Mr. Weber added, “With Xadago® (safinamide) approved in the EU and in Switzerland for the treatment of Parkinson’s disease and a current U.S. PDUFA date of March 29, 2016, Newron is focused on accelerating the clinical development of sarizotan and building relationships with key opinion leaders, patient advocacy and other key stakeholders in the Rett’s community.”

The capital increase was approved at the Company’s Extraordinary Shareholder’s Meeting on March 24, 2015. Once issued, the new shares will be immediately and freely tradable. Closing of the transaction will be subject to customary Italian and Swiss regulatory requirements. The new shares will be listed and traded on the SIX Swiss Exchange under the same ISIN as the Company’s existing shares (ISIN: IT0004147952) on or around November 25, 2015.

Piper Jaffray acted as exclusive financial advisor to Newron in connection with the transaction.

About Newron Pharmaceuticals

Newron (SIX: NWRN) is a biopharmaceutical company focused on the development of novel therapies for patients with diseases of the central nervous system (CNS) and pain. The Company is headquartered in Bresso near Milan, Italy. Marketing authorization in the EU for Xadago® (safinamide) for the treatment of Parkinson’s disease was granted by the EU Commission in February 2015, followed by the launch by Zambon in the first key EU country - Germany - in May 2015. The New Drug Application (NDA) has been accepted for review by the FDA, as reported in March 2015. In November 2015, Swissmedic has granted marketing authorization to Zambon, Newron’s partner. Zambon has the rights to develop and commercialize safinamide globally, excluding Japan and other key Asian territories, where Meiji Seika has the rights to develop and commercialize the compound. Newron’s additional projects are based on highly promising treatments for rare disease patients and are at various stages of clinical development. They include sarizotan for patients with Rett syndrome, for which Newron received Orphan Drug Designation in both the US and the EU, ralfinamide for patients with specific rare pain indications, and NW-3509 as potentially the first add-on therapy for the treatment of patients with positive symptoms of schizophrenia.