Biotie Terminates the Agreement to Acquire Newron
Biotie Therapies Corp. and Newron Pharmaceuticals S.p.A. have on 27 September 2011 signed a joint merger plan together with a combination agreement for Biotie to acquire Newron through a European Union cross-border merger.
On 21 October 2011, Biotie announced that, effective April 2012, Merck Serono will return to Newron the full global rights for safinamide, Newron's lead asset, which is currently in Phase 3 development for Parkinson's disease. Under the terms and conditions of the Merger Plan and the combination agreement, the return of rights from Merck Serono constitutes a Material Adverse Effect, giving Biotie the right but not the obligation to terminate the Merger Plan and the combination agreement.
After reviewing this development in relation to safinamide, the Board of Directors of Biotie has notified Newron of its decision to exercise its right to terminate the Merger Plan and combination agreement, without further obligations from Biotie. As a result, Biotie is entitled to a break-up fee of EUR 1,500,000 from Newron.