GENEVA, Switzerland, March 31, 2011 /PRNewswire/ -- Merck Serono, a division of Merck KGaA, Darmstadt, Germany, announced today that Merck KGaA has entered into an agreement that broadens the scope of the collaboration with Newron Pharmaceuticals S.p.A. ("Newron"), Milan, Italy. The two companies are already collaborating on the development of safinamide in Parkinson's disease.

Under the terms of the agreement, Newron will receive a development license for two Merck clinical-stage compounds, pruvanserin and sarizotan. Merck will retain buy-back options for each compound upon completion of proof of concept trials. Should these options be exercised by Merck, Newron will have a co-development option. No further financial terms are disclosed.

Pruvanserin and sarizotan are highly selective compounds for specific serotonin or dopamine receptors and modulate the activity of these neurotransmitters in the brain. Both compounds exhibit pharmacological properties and have clinical data that support further evaluation and development. Newron will assess the potential of these compounds in additional preclinical experiments prior to initiating proof of concept studies in central nervous system (CNS) diseases.

"We are very pleased to continue building our relationship with Newron," said Dr. Bernhard Kirschbaum, Executive Vice President for Global Research and Development at Merck Serono. "We believe that this expanded collaboration will leverage Newron's strong expertise in the early-stage development of compounds targeting CNS indications."

Dr. Ravi Anand, Newron's Chief Medical Officer, stated: "This agreement is an excellent opportunity for Newron to expand its development pipeline with innovative compounds within Newron's field of expertise."