NeuroSearch to Acquire Carlsson Research

The Danish publicly listed biopharmaceutical company NeuroSearch A/S has signed a conditional agreement to acquire A. Carlsson Research AB – one of Sweden’s leading biopharmaceutical companies within discovery and development of drugs for the treatment of diseases in the central nervous system (CNS). The agreed consideration amounts to SEK 875 million whereof SEK 250 million is to be paid upfront and SEK 625 million is to be paid in connection with the successful attainment of agreed development milestones.

“Since inception, we have proven our ability to efficiently generate truly novel candidate drugs for the treatment of CNS disorders”, said Nicholas Waters, CEO Carlsson Research AB. “As part of NeuroSearch, Carlsson Research programs will be added significant scientific resources and the financial strength necessary to fully exploit the medical, and thereby commercial, potential of our products, which is of great interest for all Carlsson Research stakeholders.” “Carlsson Research is a company which successfully has managed the transition from high profile and innovative academic research to the creation of a successful commercial drug discovery company”, said Jonas Frick, Board Member of Carlsson Research and CEO of Carlsson Research’s largest shareholder, Scandinavian Life Science Venture (SLS). “We are confident that the combination of Carlsson Research and NeuroSearch will ensure that the innovations of Carlsson Research are commercialized in the best possible way and that the new company becomes a strong and exiting actor in the CNS field”. The agreed consideration consists of an initial payment of SEK 250 million and up to SEK 625 million of future payments to be made over a period of time in connection with the successful attainment of agreed clinical milestones relating to Carlsson Research’s development programs. The acquisition of Carlsson Research is conditional, inter alia, upon a share offering being made by NeuroSearch. Following the acquisition, Carlsson Research will operate as a fully owned subsidiary of NeuroSearch A/S and will change its name to NeuroSearch AB. The company will continue its current operations and will be under the management of Dr. Nicholas Waters, who will also become a member of NeuroSearch’s management group. In connection with the acquisition, Carlsson Research and its shareholders are advised by Hjalmarsson & Gunterberg Corporate Finance AB, Setterwalls Advokatbyrå and Nielsen Nørager Law Firm. For more information, please contact: Dr. Nicholas Waters, CEO of Carlsson Research Tel: +46-730-75 77 01 TO THE EDITORS About Carlsson Research Carlsson Research is a biopharmaceutical company, focusing on the discovery and clinical development of new pharmacological treatment principles for psychiatric and neurological disorders. The most mature research programs of Carlsson Research are currently focused on dopaminergic stabilizers with the aim of discovering new and improved therapies for psychiatric and neurological diseases. An important key element in the company’s R&D platform is a proprietary and unique technology, the Integrative Screening Process (ISP), which e.g. comprises innovative bioinformatics and is used for rapid and efficient selection of drug candidates. The company has 30 employees. The largest shareholders of Carlsson Research are Scandinavian Life Science Venture, Professor Arvid Carlsson and the employees of Carlsson Research. Carlsson Research product pipeline To date, Carlsson Research product pipeline consists of four development programs in four disease areas: ACR16 Huntington’s disease. ACR 16 is under preparation for a clinical Phase III study in Huntington’s disease, for which Carlsson Research holds the commercial rights. ACR16 Schizophrenia. Carlsson Research has successfully completed a proof of concept clinical Phase I/II study in schizophrenia. The rights to develop and market ACR16 for schizophrenia and other indications has been licensed to the international pharmaceuticals group Astellas Pharma Inc.; ACR325. ACR325 is being developed for the treatment of psychoses and bipolar disorder. An application to initiate a clinical Phase I study has been submitted to the Swedish MPA. ACR343. ACR343 was recently selected as a development candidate for Parkinson’s disease.