Neurodyn, the P.E.I. biotech developing early treatments for neurological diseases, has closed a deal to buy NeuroQuest, the Halifax-based drug development company spun out of Origin Biomed two years ago.

This interprovincial deal is significant because it enlarges one of the region’s leading young biotech companies, marries two superb management teams and combines their suite of drug candidates that target neurological afflictions.

Founded by CEO Kenneth Cawkell, University of British Columbia scientist Chris Shaw and CSO Denis Kay, Neurodyn has discovered a natural extract from ginseng that can arrest or slow the deterioration of animals with Parkinson’s Disease. The company plans to develop an over-the-counter product that early-stage Parkinson’s sufferers could take before moving on to existing treatments, such as dopamine agonists.

But that’s just part of the story. The group has developed its BioActives Discovery Engine through international partnerships, in-house chemistry capability and proprietary animal models.

The company’s animal models of neurological disease are unique because they more accurately reflect the slow progression of neurological disease in humans than current models.

With the purchase of NeuroQuest, the company can optimize the bioactive components of natural products, using the new subsidiary’s full synthetic and medicinal chemistry capacity. The companies did not reveal the terms of the deal.

NeuroQuest was created by two veterans of Origin Biomed, the Halifax company that manufactures and markets Neuragen, which helps relieve pain caused by diabetic nerve damage. Former CEO Bob Cervelli and CSO Alexander McLellan formed NeuroQuest two years ago to work on the development on a new class of drugs. Its research is being carried out with $3 million of R&D support from the Atlantic Canada Opportunity Agency’s Atlantic Innovation Fund. The new drug to treat neuropathic pain will now be developed within the Neurodyn portfolio.

Neurodyn CSO Kay said in an interview that Neurodyn is excited about the opportunity to expand its product portfolio beyond the Parkinson’s naturopathic product and into neuropathic pain treatment -- both of which are large unmet medical needs. 

With the acquisition, Cervelli and McLellan have joined the Neurodyn team. Kay said the two strengthen the management team because of their experience in the regulatory environment for the over-the-counter health product market and in raising money and marketing products across North America.