Proximagen Neuroscience has announced a £4.3m deal to acquire Minster Pharmaceuticals, a drug development company focused on neurological and psychiatric disorders.
The acquisition was completed using £50m in funds that Proximagen raised in June 2009 to pursue its strategy of acquiring promising drugs related to the central nervous system.
Minster's principal pipeline assets are tonabersat and sabcomeline, for which the company held worldwide rights acquired from GlaxoSmithKline.
Tonabersat is the leading compound in an exciting new class of selective drugs designated as neuronal gap junction blockers. Sabcomeline is a muscarinic partial agonist with the potential to treat cognitive decline in schizophrenia.
Proximagen CEO Kenneth Mulvany said that the company wass particularly interested in tonabersat.
"We believe it has potential for the treatment of epilepsy, one of the most common of the serious neurological disorders," Mulvany said.
Under the terms of the offer, Minster shareholders will receive 6 pence in cash for each Minster Share, valuing the entire issued and to be issued share capital of Minster at approximately £4.3m.