Axsome acquires epilepsy treatmnt

 Axsome obtains exclusive global rights to AZD7325, a novel oral selective GABAA α2,3 receptor positive allosteric modulator

Deepens Axsome’s broad and innovative neuroscience portfolio with a synergistic early-stage program for epilepsy

Axsome Therapeutics, Inc. (NASDAQ: AXSM), a biopharmaceutical company leading a new era in the treatment of central nervous system (CNS) disorders, today announced that it has entered into an agreement to obtain exclusive global rights to AZD7325, a novel oral GABAA receptor α2,3 subtype-selective positive allosteric modulator (PAM), licensed from AstraZeneca AB (NASDAQ: AZN). AZD7325 has completed Phase 1 trials. Axsome intends to evaluate AZD7325 as a potential treatment for epilepsy and plans to begin Phase 2 trial-enabling activities in 2026.

“This transaction adds AZD7325, an earlier stage molecule with a differentiated mechanism of action, to our leading late-stage CNS portfolio,” said Herriot Tabuteau, MD, Chief Executive Officer of Axsome. “We are excited to further deepen our research pipeline in a complementary way, and to extend our clinical efforts into epilepsy, an area where there is an urgent need for innovative new treatment options for patients.”

AZD7325 has demonstrated anti-convulsant effects in preclinical seizure models. In clinical studies in over 700 patients to date, AZD7325 has demonstrated a favorable safety and tolerability profile.

Axsome will receive worldwide commercial, development, and manufacturing rights to AZD7325. The transaction was effectuated through Axsome’s acquisition of a 100% equity interest in Baergic Bio, Inc., a subsidiary of Avenue Therapeutics, Inc. (OTC: ATXI), and concurrent amendment to the License Agreement between Baergic Bio and AstraZeneca. Under the terms of the Baergic Bio Share Purchase Agreement, Baergic Bio shareholders will receive a $0.3 million upfront payment and are eligible to receive development and regulatory milestone payments of $2.5 million for the first indication and $1.5 million for each indication thereafter, up to $79 million in potential sales-based milestones, and a tiered mid-to-high single-digit royalty on potential global net sales of AZD7325. Under the terms of the License Amendment, AstraZeneca will receive a cash upfront payment in the single digit millions and is eligible to receive development and regulatory milestone payments for each indication, sales-based milestones, and a tiered mid-to-high single-digit royalty on potential global net sales of AZD7325.

https://finviz.com/news/220612/axsome-therapeutics-acquires-subtype-selective-gaba-a-receptor-positive-allosteric-modulator-azd7325-for-the-treatment-of-epilepsy