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2 Nov 2011

Biotie Therapies to Terminate Planned Merger with Newron Pharmaceuticals

Finland's Biotie has decided to end the deal to acquire Newron after Merck decided to give up rights to Newron's Parkinson's drug safinamide.

Finland's Biotie Therapies will use its right to terminate its planned merger with Newron Pharmaceuticals following a decision by Merck to return the full global rights to investigational Parkinson's disease drug safinamide to the Italian firm.


The firms planned to merge a month ago but Biotie says that the return of rights from Merck "constitutes a material adverse effect", giving the company the right to terminate the merger.


Biotie said in a statement: "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 EUR1.5 million from Newron."

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