Newron raises CHF26.1 Mio. in a private placement of new shares

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Milan, Italy – October 7, 2016 – Newron Pharmaceuticals S.p.A. (“Newron”, SIX: NWRN), a biopharmaceutical company focused on the development of novel therapies for patients with diseases of the central nervous system (CNS) and pain, announces today that it has raised gross proceeds of CHF26.1 Mio. through a private placement of new shares via an accelerated book building procedure announced on October 6, 2016.

Newron has placed 1,320,530 new shares with institutional investors at a subscription price of CHF 19.75 per share, representing a 13.4% discount to the last five trading days’ average closing price. The new shares represent 8.4% of the new total number of outstanding shares (post transaction) of 15,769,168.

Closing of the transaction will be subject to certain customary conditions. The new ordinary shares will be listed and traded on the SIX Swiss Exchange under the same ISIN as the Company’s existing shares (ISIN: IT0004147952) on or around October 13, 2016.

Newron will use the net proceeds of the issuance for general corporate purposes, including the financing of Newron's operations and research programs, for the development of Newron's current and future pipeline products with a focus on orphan indications and products and product candidates that need certain regulatory and development efforts to repurpose them, and if such aforementioned development programs are successfully completed, to explore the possibility of establishing commercialization operations for certain selected territories.

Stefan Weber, CEO of Newron, commented: “With Xadago® (safinamide) launched in eleven European countries by our partner Zambon and the US FDA decision on the New Drug Application NDA expected in QI/2017, Newron’s focus is now on the performance of its ongoing and potentially pivotal study with Sarizotan in Rett Syndrome, an orphan CNS disease for which Newron has already been granted an Orphan Drug Designation (ODD) in both the EU and the USA, as well as the completion of the Phase IIa study with Evenamide (NW-3509) in schizophrenia, expected to read out by the end of 2016. We thank existing and new shareholders for their support of Newron’s strategy for sustainable growth.”

Roberto Galli, Newron’s Vice President of Finance, added: ”The funds raised are expected to support our activities well through 2018, well beyond key inflexion points of our pipeline products.”

Jefferies International Limited acted as bookrunner, Kepler Cheuvreux SA as co-lead manager and MC Services AG as placement agent of the transaction.

About Newron Pharmaceuticals

Newron (SIX: NWRN) is a biopharmaceutical company focused on the development of novel therapies for patients with diseases of the Central Nervous System (CNS) and pain. The Company is headquartered in Bresso near Milan, Italy. Xadago® (safinamide) has received marketing authorization for the treatment of Parkinson’s disease in the European Union and Switzerland and is commercialized by Newron’s Partner Zambon. US WorldMeds holds the commercialization rights in the US. Meiji Seika has the rights to develop and commercialize the compound in Japan and other key Asian territories. In addition to Xadago® for Parkinson’s disease, Newron has a strong pipeline of promising treatments for rare disease patients at various stages of clinical development, including Sarizotan for patients with Rett syndrome and ralfinamide for patients with specific rare pain indications. Newron is also developing NW-3509 as the potential first addon therapy for the treatment of patients with positive symptoms of schizophrenia. For more information, please visit: www.newron.com

For more information, please contact

Media

Newron
Stefan Weber – CEO
+39 02 6103 46 26
Email: [email protected]

UK/Europe
Julia Phillip
FTI Consulting
Phone: +44 20 3727 1000

Switzerland
Martin Meier-Pfister
IRF Communications
Phone: +41 43 244 81 40

Germany
Anne Hennecke
MC Services AG
Phone: +49 211 52925222

USA
Alison Chen
LaVoieHealthScience
Phone: +1 617 374 8800, Ext. 104

Investor and Analyst inquiries

Newron
Stefan Weber – CEO
+39 02 6103 46 26
E-mail: [email protected]

UK/Europe
Julia Phillips
FTI Consulting
Phone: +44 20 3727 1000

Switzerland
Martin Meier-Pfister
IRF Communications
Phone: +41 43 244 81 40

Germany/Europe
Anne Hennecke
MC Services
Phone: +49 211 52925222

USA
Beth Kurth
LaVoieHealthScience
Phone: +1 617 374 8800, Ext. 106

Important Notices

This document is not an offer to sell or a solicitation of offers to purchase or subscribe for shares. This document is not a prospectus within the meaning of Article 652a of the Swiss Code of Obligations, nor is it a listing prospectus as defined in the listing rules of the SIX Swiss Exchange AG or a prospectus under any other applicable laws. Copies of this document may not be sent to jurisdictions, or distributed in or sent from jurisdictions, in which this is barred or prohibited by law. The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, in any jurisdiction in which such offer or solicitation would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction.

This document is not for publication or distribution in the United States of America, Canada, Australia or Japan and it does not constitute an offer or invitation to subscribe for or purchase any securities in such countries or in any other jurisdiction. In particular, the document and the information contained herein should not be distributed or otherwise transmitted into the United States of America or to U.S. persons (as defined in the U.S. Securities Act of 1933, as amended (the “Securities Act”)) or to publications with a general circulation in the United States of America. This document is not an offer for sale of securities in the United States. The securities referred to herein have not been and will not be registered under the Securities Act, or the laws of any state, and may not be offered or sold in the United States of America absent registration under or an exemption from registration under Securities Act. Newron does not intend to register any part of the offering in the United States, There will be no public offering of the securities in the United States of America.

The information contained herein does not constitute an offer of securities to the public in the United Kingdom. No prospectus offering securities to the public will be published in the United Kingdom. This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

Any offer of securities to the public that may be deemed to be made pursuant to this communication in any member state of the European Economic Area (each an “EEA Member State”) that has implemented Directive 2003/71/EC (together with the 2010 PD Amending Directive 2010/73/EU, including any applicable implementing measures in any Member State, the “Prospectus Directive”) is only addressed to qualified investors in that Member State within the meaning of the Prospectus Directive.

This publication may contain specific forward-looking statements, e.g. statements including terms like “believe”, “assume”, “expect”, “forecast”, “project”, “may”, “could”, “might”, “will” or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of Newron and those explicitly or implicitly presumed in these statements. Against the background of these uncertainties, readers should not rely on forward-looking statements. Newron assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.

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