Newron receives €3.7million under Italian government R&D support program

Newron Pharmaceuticals SpA a research and development company focused on novel CNS and pain therapies has been advised by the Italian government’s Ministero dell’ Istruzione, dell’ Università e della Ricerca, that it is to receive a total payment of €3.7 million with immediate effect, as part of a €5 million grant for innovative R&D. In 2008 Newron was awarded the €5 million grant by the Ministry towards a €5.3 million R&D program ongoing at the company. The grant supports the research and identification of novel compounds for the treatment of diseases of the Central Nervous System. About 40% of the grant is nonreimbursable. The rest bears interest of 0.5% per year and is required to be fully repaid within 10 years from the grant date. Luca Benatti, Newron’s CEO, said: “This significant reimbursement for our R&D further strengthens our cash position and validates our continuous effort in searching for innovative Ion channel molecules for CNS diseases. This comes on the back of the private placement of SFr3.5 million (€2.7 million) completed in late December. Our operations are now funded well into 2012.”