Jazz pays $125m upfront for sleep drug
This article was originally published in Scrip
Jazz Pharmaceuticals has followed up its $1bn December acquisition of Italian company Gentium with a new agreement to buy rights to Aerial BioPharma's ADX-N05, a novel compound in clinical development for the treatment of excessive daytime sleepiness in patients with narcolepsy. Jazz is paying $125m upfront for the product.
Investors liked the deal: Jazz shares closed 6% up at $146.84 on the news (13 January 2014).
Under the agreement, Jazz has acquired worldwide development, manufacturing and commercial rights to ADX-N05, other than in certain countries in Asia where SK Biopharmaceuticals retains rights. SK, the originator of the product, licensed to Morrisville, NC-based Aerial the rights now taken by Jazz.
Aerial and SK are eligible to receive milestone payments based on development, regulatory and sales milestones and tiered royalties based on potential future sales.
Jazz said Phase IIb results with ADX-N05, reported last October, sealed the deal. "Given ADX-N05's demonstrated wake-promoting properties in two Phase II studies, including the Phase IIb results, we believe ADX-N05 could also potentially benefit patients whose excessive daytime sleepiness stems from other causes, such as obstructive sleep apnea, where we also intend to pursue Phase III," said Dr Jeffrey Tobias, executive vice president of R&D and chief medical officer of Jazz, speaking on a conference call on 13 January.
Jazz is having an end-of-Phase II meeting with the US FDA "mid-2014" and will release further development plans thereafter. "We want to start our Phase III program for ADX-N05 as quickly as possible," he said
"ADX-N05 is a strong fit with our specialty focus and continues our commitment to develop and bring to market differentiated treatments for patients with sleep-related disorders," added Bruce Cozadd, chairman and chief executive officer of Jazz.
acquisition trail
Dublin-based Jazz, one of the pharmaceutical companies taking advantage of favorable tax rates in Ireland, bought Gentium for its Defitelio (defibrotide) 'pipeline in a pill' (scripintelligence.com, 20 December 2013). It has plans to expand the approved EU label beyond the treatment of severe hepatic veno-occlusive disease (VOD) in hematopoietic stem cell transplant patients. Jazz will launch the drug in the EU during the first quarter of this year.
Jazz's previous big acquisition was the purchase of EUSA Pharma for up to $700m, which closed in June 2012 (scripintelligence.com, 30 April 2012).