Axaron and LION have joined forces to form a stock exchange-listed pharmaceutical company that specialises in the development of drugs to treat neuro-degenerative diseases.

Dietmar Hopp, co-founder of the Walldorf-based software company SAP, has invested Euro 21 million into the new company, thereby allowing it to step up its commitment to the life sciences sector. BASF AG, the main shareholder of Axaron, retains a Euro 7 million holding in the company, while LION has put up a further Euro 23 million. The company’s objective is to develop drugs for the treatment of CNS diseases for which there have so far been no, or at best only inadequate, therapeutic options. AX200, an agent designed to prevent strokes, is the most advanced medication that is currently being tested in clinical phase IIa. The study is set to be completed by the end of 2008. An effective, broad-spectrum drug in this sector would have sales potential of far in excess of Euro 1 billion per annum.

Axaron has already been successfully developing CNS drugs for years and has a very promising pipeline of product candidates. LION's contributions to the new company include the stock exchange listing and financial market expertise. The company, whose new name will be decided at LION's AGM in the autumn of 2006, will be headed up by two directors: Alfred Bach (Axaron) and Peter Willinger (LION). The plan is to enable the company to grow systematically and gather strength through further proprietary developments and through the acquisition of new products.