Newron Pharma nails $25M equity line

Newron Pharmaceuticals has lined up new financing to get itself through the current economic crisis. The developer--which has been working on new therapies for pain and CNS diseases--has inked an equity line deal with YA Global Investments. YA will be able to buy up to $25 million in stock at Newron's direction over a three-year period. Newron had €50 million on hand in mid-September and has the option of tapping the equity line as needed.

"Management believes that this instrument provides us with sensible financial flexibility in the current market environment," said CEO Lucca Benatti. "As our product pipeline progresses towards commercialization, a strengthened financial position increases our strategic options to create value."

- here's Newron's release [1]

Related Articles:
Italy's Newron buys U.K.-based developer [2]
Newron reports positive mid-stage pain data [3] (July 2007)
FDA OKs Newron trials [4] (June 2007)