Following safety issues raised by the US FDA, no toxicity concerns have emerged in preclinical studies of Newron’s candidate schizophrenia therapy, evenamide, and a clinical safety study has started to evaluate its CNS effects.

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.

Aspen Neuroscience, Pandion and iTeos raised $70m, $80m and $125m, respectively. Also, Glide Healthcare closed a €416m ($450m) fund; ElevateBio, Kallyope and SutroVax reveal VC mega-rounds; and Dragonfly adds new funding to its partnering proceeds. 

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.