NeuroSearch concludes agreement with Biolin Scientific regarding the sale of Sophion Bioscience

Announcement
06.07.2011


Today, NeuroSearch A/S (NEUR) signed an agreement with Biolin Scientific AB, a subsidiary of Ratos AB, concerning the sale of the company's 30.1% shareholding in Sophion Bioscience A/S. Concurrently, all other shareholders in Sophion will sell their ownership share.
 
The sales price is DKK 155 million in total of which DKK 10 million depend on sales milestones in 2011/12. The sale is expected to be finalised in Q3 2011.

NeuroSearch founded Sophion in 2000 as a spin-out of an in-house technology project. Since then, NeuroSearch has been actively involved in the development of Sophion's automated patch clamp products, primarily the QPatch^™. These systems have been in beta test at NeuroSearch as well as used in the testing of NeuroSearch drugs for the effect on ion channels. As the production of laboratory equipment is not part of the NeuroSearch core business, this sale is the best way forward to ensure the continued successful development of Sophion.

Patrik Dahlen, CEO of NeuroSearch, commented as follows:
"The sale of Sophion to Biolin Scientific will ensure the further development of Sophion's technology within electrophysiological recordings. We are pleased to have participated in bringing Sophion to this stage and the sale also adds positively to our focus on the continued development of Huntexil^®."

NeuroSearch will receive proceeds of approx. DKK 40 million for the sale of the company's shareholding, which will positively influence the financial statement (financials items) with an amount of approx. DKK 32 million. The company will receive 80% of the proceeds upon closing and the remaining 20% will be released after 18 months.

NeuroSearch maintains the company's financial expectations for the full financial year 2011 of an expected loss before financials and other shares of result in the region of DKK 325 million.


Patrik Dahlen
CEO


Contact persons:
Patrik Dahlen, CEO, telephone: +45 4460 8214 or +45 2629 7296
René Schneider, EVP & CFO, telephone: +45 4460 8700 or +45 2911 2097


About NeuroSearch
NeuroSearch is a European based biopharmaceutical company, listed on NASDAQ OMX Copenhagen A/S (NEUR) and specialising in CNS diseases. The company has a pipeline of specialty CNS drugs, including Huntexil^® (pridopidine), a unique orphan drug in Phase III for the treatment of Huntington’s disease. NeuroSearch is building commercial competences with a view to commercialising Huntexil^® through an in-house marketing and sales organisation.

NeuroSearch has a well-established drug discovery division, NsDiscovery, with unique capabilities in the field of ion channels and CNS diseases. The company has strategic drug discovery and development alliances with Janssen Pharmaceutica and Eli Lilly as well as a licence collaboration with Abbott. NeuroSearch also has equity interests in a number of unlisted companies in the Life Science industry.