By Colin Kellaher
Axsome Therapeutics Inc. on Monday said it agreed to buy the sleep-disorder drug Sunosi from fellow biopharmaceutical company Jazz Pharmaceuticals PLC for an initial $53 million.
New York-based Axsome said the deal also includes the payment of royalties to Jazz on U.S. sales of Sunosi and the assumption of Jazz's commitments related to the drug to SK Biopharmaceuticals Co. and Aerial Biopharma, which include royalties on sales and up to $165 million in revenue milestones.
Sunosi, which is approved in the U.S. and Europe to improve wakefulness in adults with excessive daytime sleepiness due to narcolepsy or obstructive sleep apnea, saw its sales more than double last year to $104 million.
Axsome said the deal accelerates its transition to a global commercial entity as it awaits regulatory approval of AXS-05 in depression and AXS-07 in migraine.
Dublin-based Jazz said the divestiture will enable it to sharpen its focus on its highest strategic priorities, adding that it remains committed to developing new therapies in neuroscience and oncology.
Axsome said it plans to finance the transaction under its $300 million term-loan facility and it expects to complete the U.S. portion of the deal in the second quarter, with the international portion closing within 60 days of the U.S. close.
Write to Colin Kellaher at firstname.lastname@example.org
(END) Dow Jones Newswires
March 28, 2022 06:43 ET (10:43 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.