Sarizotan, licensed from Merck KGaA in 2011 for Rett syndrome, was seen as a potential gamechanger for Newron but the termination of the project leaves a huge hole in the Italian group's pipeline.

Japanese firm sets stage to acquire US bioventure after it raises stake just ahead of key readout for lead asset.

The Italian firm has some talking to do with the US FDA before it can unblind Phase III data on sarizotan, its Rett syndrome therapy which could be "potentially transformative" for Newron.

Positive Phase II data in the unmet medical need could mean patients will have a therapy specific to their disease, rather than burdensome symptom-by-symptom treatment.