Neuren Pharmaceuticals, an Auckland, New Zealand, biotech focused on neural regeneration, agreed to acquire venture-backed Hamilton Pharmaceuticals for $4.4 million in stock. (Neuren is publicly traded; its release is here.)
Hamilton, a "virtual" specialty-pharma company with a home address on Washington, D.C.'s K Street, aims to pick up failed or discarded drug candidates in order to find new uses for them. The company raised $11 million in a first-round funding back in 2005, with Vivo Ventures, CNF Investments and Index Ventures participating.
Because the acquisition is stock-based, the three venture funds will remain shareholders of Neuren. In addition, Vivo and CNF will invest an additional $3 million in the company as part of the acquisition.
As a result of the deal, Neuren will take control of Motiva, an experimental drug now intended to treat cognitive and psychological disorders associated with conditions such as Parkinson's disease, Alzheimer's disease and others. As Neuren pushes the drug forward, Hamilton shareholders are also eligible for up to $4 million in milestone payments.