Milan, Italy, February 15, 2011 – Newron Pharmaceuticals S.p.A. (SIX: NWRN), a research and development company focused on novel CNS and pain therapies, announced today that it 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 EUR3.7 million with immediate effect, as part of a EUR5 million grant for innovative R&D.
In 2008 Newron was awarded the EUR5 million grant by the Ministry towards a EUR5.3 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 non-reimbursable. 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 CHF3.5 million (EUR2.7 million) completed in late December. Our operations are now funded well into 2012.”