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14 August 2019AmericasSarah Morgan

Jazz Pharma buys clinical-stage biotech company

Ireland-based Jazz Pharma has acquired Virginia-based Cavion in a deal that values the clinical-stage biotech company at up to $312.5 million.

Cavion shareholders will receive an upfront payment of $52.5 million, with the potential to receive additional payments of up to $260 million.

Jazz, which announced the deal on Monday, August 12, said that Cavion, which focuses on therapies aimed at modulating the T-type calcium channel for the treatment of chronic and rare neurological diseases, is now a wholly-owned subsidiary.

Cavion's lead molecule, CX-8998, has been evaluated in a Phase 2 clinical study in patients with essential tremor, a neurological disorder that causes involuntary and rhythmic shaking.

Robert Iannone, executive vice president, research and development at Jazz, said: “The acquisition of Cavion demonstrates our commitment to further diversify our pipeline and product portfolio with the addition of CX-8998, which has the potential to provide a meaningful treatment option to patients.”

Andrew Krouse, president and CEO of Cavion, added: “We believe that Jazz Pharmaceuticals' development and commercial expertise will help realise the value of CX-8998 as a treatment for patients with essential tremor.”

Earlier this month, Jazz reported a second-quarter revenue increase of 7% to $534 million.

Bruce Cozadd, chairman and CEO of Jazz, said: “2019 has been notable for significant execution and accomplishments across all aspects of our business, including strong financial results, the US launch of Sunosi and further expansion and diversification of our development pipeline through internal and acquired research and development programmes.”

In July, Jazz acquired Redx Pharma’s pan-RAF (a protein involved in sending signals inside cells) inhibitor programme for the potential treatment of RAF and RAS mutant tumours.

Jazz made an upfront payment of $3.5 million, with Redx eligible to receive up to $203 million in development, regulatory and commercial milestone payments.

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More on this story

Big Pharma
4 February 2021   Jazz Pharmaceuticals has acquired UK medicinal cannabis company GW Pharmaceuticals in a takeover worth $7.2 billion.
Generics
14 October 2021   Molina Healthcare claims that Jazz Pharmaceuticals delayed generics of its flagship narcolepsy drug Xyrem and hiked the drug prices to increase profits when it was on the verge of bankruptcy.