Newron raises CHF 27.0 Million in a private placement of new shares

Milan, Italy - September 26, 2017 - Newron Pharmaceuticals S.p.A. ("Newron" or the "Company", SIX: NWRN), a biopharmaceutical company focused on the development of novel therapies for patients with diseases of the central and peripheral nervous system, announces that it has raised gross proceeds of CHF 27.0 million through a private placement of new shares via an accelerated book-building process announced on September 25, 2017 (the "Transaction").

Newron has placed 2,000,000 new shares with institutional investors at a subscription price of CHF 13.50 per share, representing a 14.8% discount to the volume weighted average price of the existing shares in the five consecutive open market days preceding the reference date. The new shares represent 11.2% of the new total number of outstanding shares (post-Transaction) of 17,817,418.

The closing of the Transaction will be subject to certain customary conditions. The new ordinary shares are expected to 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 2, 2017.

Newron intends to use the net proceeds of the Transaction for general corporate purposes, including the financing of the Company's operations and research programs and for the development of the Company's current and future pipeline products, with a focus on Evenamide. The Company has a focus on developing drugs for orphan indications and products/product candidates that need specialized regulatory and development efforts. Newron is seeking opportunistic additions to the Company's pipeline portfolio and, if such aforementioned development programs are successful, will explore the possibility of establishing commercialisation operations for certain selected territories.

Stefan Weber, CEO of Newron, commented: "With Xadago® (safinamide) launched in twelve European countries by our partner Zambon and in the USA, by US WorldMeds, Newron's focus is now on the results of its ongoing and potentially pivotal study with Sarizotan in Rett Syndrome, an orphan CNS disease for which Newron has already been granted Orphan Drug Designation in both the EU and the USA, as well as completing the design of a potentially pivotal study with Evenamide (NW-3509) in schizophrenia. 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 through 2019, well beyond key inflection points of our pipeline products."

About Newron Pharmaceuticals

Newron (SIX: NWRN) is a biopharmaceutical company focused on the development of novel therapies for patients with diseases of the central and peripheral nervous system. 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, Switzerland and the USA, and is commercialized by Newron's Partner Zambon. US WorldMeds holds the commercialization rights in the USA. 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 Evenamide as the potential first add-on therapy for the treatment of patients with positive symptoms of schizophrenia. For more information, please visit: www.newron.com

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Stefan Weber - CEO
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