Axsome To Buy Sunosi From Jazz

(RTTNews) - Axsome Therapeutics, Inc. (AXSM) said on Monday that it has inked a deal to acquire Solriamfetol, sold under the brand name Sunosi, from Jazz Pharmaceuticals, for an upfront sum of $53 million.

In addition, Jazz will receive a high single-digit royalty on Axsome's U.S. net sales of Sunosi in the current indication, and a mid single-digit royalty in the future indications.

According to the deal, Axsome will obtain worldwide commercial, development, manufacturing, and intellectual property rights of Sunosi, except for certain Asian markets.

Axsome noted that the drug will be immediately revenue generating upon closing of the deal, and is expected to be breakeven to Axsome's operating plan in 2023 and substantially accretive thereafter.

Herriot Tabuteau CEO of Axsome, said: "This acquisition immediately transforms Axsome into a global commercial entity, upon closing, and accelerates our growth as a premier biopharmaceutical company focused on delivering potentially life-changing medicines to people living with serious CNS conditions."

The acquirer said it expects to finance the deal through its existing $300 million term loan facility with Hercules Capital, Inc. The drug generated net sales of $57.9 million in 2021, representing a year-over-year growth of 104 percent.

Axsome will also assume the commitments of Jazz to SK Biopharmaceuticals and Aerial Biopharma. SK is the inventor of Sunosi and retains rights in 12 Asian markets, including China, Korea, and Japan.

In 2014, Jazz acquired from Aerial worldwide rights to Sunosi excluding those Asian markets.

The assumed commitments to SK and Aerial include single-digit tiered royalties based on Axsome sales of Sunosi, and up to $165 million in revenue milestones and $1 million in development milestones.

Sunosi is a dual-acting dopamine and norepinephrine reuptake inhibitor (DNRI) indicated to improve wakefulness in adult patients with excessive daytime sleepiness (EDS) due to narcolepsy or obstructive sleep apnea (OSA).