NeuroSearch research creates a basis for the establishment of new biotech company named Acesion Pharma

Announcement
15.12.2011


In September 2011, NeuroSearch A/S (NEUR) announced a focusing of the company's resources including a discontinuation of the NsDiscovery research division. One of the projects in NsDiscovery will now be continued within the company Acesion Pharma ApS under establishment. This project is within a specific type of ion channels, the so-called SK channels, which – in addition to being potential targets for CNS diseases – has shown to be present in the heart and to be relevant for the regulation of the cardiac rhythm. The overall aim is to bring one of several NeuroSearch compounds into clinical development as a future treatment of the heart disease atrial fibrillation (AF).

Acesion Pharma is being founded by scientists from NeuroSearch together with two Danish venture funds, Novo Seeds and SEED Capital Denmark II/DTU Symbion Innovation A/S, which will jointly finance the further development within Acesion Pharma. NeuroSearch will not contribute with any financing of this spin-out, but will give Acesion Pharma option to a licence to a group of existing NeuroSearch compounds and new compounds, which might be developed within this patent family. Initially, Acesion Pharma will study the effect of a particular drug candidate in a clinically relevant model of AF. Should Acesion Pharma thereafter decide to exercise the option, NeuroSearch will receive an upfront payment in the form of a minority ownership in Acesion Pharma. Provided that Acesion Pharma subsequently reaches defined milestones, NeuroSearch will receive an additional ownership in the company. Furthermore, this agreement gives NeuroSearch the possibility of receiving milestone payments in cash of up to a total of EUR 30 million in connection with potential clinical development, regulatory approval and sale. Finally, NeuroSearch will receive royalties in connection with future sales.

Atrial fibrillation is the most common type of cardiac arrhythmia and it mainly hits the elderly population. It is estimated that 5-10% of the population above the age of 70 are affected by AF. In Denmark, more than 50,000 people suffer from AF and the number is expected to increase to 150,000 in year 2050, partly due to the increase in life expectancy and an increase in the prevalence of overweight and diabetes. Often, AF causes a pronounced decrease in quality of life and furthermore increases the risk of cerebral thrombosis. Most commonly, AF is treated with electric shock delivered during general anaesthesia and/or medical treatment, which brings the heart back to its normal rhythm. It is, however, recognised that existing drug therapies only have a very limited effect and produce the risks of serious adverse events. Therefore, there is a considerable need for developing better and safer drugs for the medical treatment of AF.


Financial expectations for 2011
NeuroSearch maintains its expectations to the operating result which was announced in the company's Q3 report.

CEO of NeuroSearch, Patrik Dahlen, states as follows:
"NeuroSearch fully supports the continuation of this project as a spin-out in Acesion Pharma. In this way, it will be possible to generate value from one of the research projects which has shown indeed very promising results within a disease area outside our core business. The investors are NOVO Seeds and SEED Capital Denmark under DTU Symbion Innovation, among the most well-reputed venture funds in Europe, which for us is recognition of the research that has been conducted within this project.”

CEO of Acesion Pharma, Ulrik S. Sørensen, comments:
"The research conducted by a dedicated NeuroSearch research group during many years has now made it possible to attract investors to further develop the programme within a separate company. The previously obtained results has made the group recognised as world leading within the field of SK ion channels, and in combination with the group's expertise in developing target specific drugs it forms the basis for changing focus from CNS to the heart disease atrial fibrillation. We look forward to continuing our work and, together with the investors Novo Seeds and SEED Capital Denmark under DTU Symbion Innovation, to verify the potential within this indication and aiming at developing an efficacious and safe drug."


Patrik Dahlen
CEO


Contact person
Mads P.G. Korsgaard, Manager Investor Relations & Corporate Communications, telephone: +45 4460 8309



About NeuroSearch
NeuroSearch A/S (NEUR) is a European-based biopharmaceutical company listed on NASDAQ OMX Copenhagen A/S and specialising in central nervous system (CNS) disorders. The vision is to develop NeuroSearch into a profitable specialty pharmaceutical company. The strategy is primarily to complete the development and subsequently to market Huntexil^®, a unique drug in clinical Phase III for the treatment of the motor symptoms of Huntington’s disease.
Among discontinuing activities, NeuroSearch also has a portfolio of assets for outlicensing or divestment. This includes tesofensine which has shown outstanding efficacy in the treatment of obesity, the Integrative Screening Process (ISP), which is a proprietary systems biology approach, as well as a broad range of ion channel technologies and patented compounds identified as ion channel modulators.


About Acesion Pharma
Acesion Pharma ApS is a Danish biotech company (under establishment) with the aim of developing more efficacious and safer dugs for the medical treatment of the heart disease atrial fibrillation (AF). The company is being founded jointly by the venture funds Novo Seeds and SEED Capital Denmark II/DTU Symbion Innovation and research scientists from NeuroSearch A/S. It is based on research results and IP developed within NeuroSearch A/S.