JAZZ Inks $1B Licensing Deal With Saniona for Epilepsy Drug

JAZZ Pharmaceuticals JAZZ announced that it has signed an agreement with Denmark-based biopharmaceutical company Saniona to acquire worldwide rights to the latter’s investigational epilepsy drug, SAN2355.

SAN2355 is a selective, small-molecule activator of Kv7.2/Kv7.3 potassium channels — a mechanism both Jazz and Saniona claim is valid for seizure suppression. Unlike earlier therapies, the drug is specifically designed to avoid activating other Kv7 subtypes. This distinction is critical, as seen with GSK’s GSK Potiga, which once showed clinical benefit in the same pathway but was withdrawn in 2017 due to safety issues linked to off-target Kv7 activation and limited market uptake.

Through SAN2355, Jazz/Saniona aim to avoid the concerns associated with GSK’s Potiga by focusing exclusively on the Kv7 targets directly linked to seizure control.

Per the terms of the deal, Jazz will take charge of SAN2355’s clinical development and commercialization. In exchange, Saniona will receive an upfront cash payment of $42.5 million and remain eligible for milestone payments of up to $192.5 million tied to development and regulatory achievements, along with up to $800 million linked to commercial milestones. Jazz will also pay Saniona royalties on future sales of the drug.

JAZZ Stock’s Performance

Year to date, shares of the company have lost 3% against the industry’s 3% growth.

What is JAZZ’s Intent Behind the Deal?

Through this deal, JAZZ Pharmaceuticals intends to expand its neuroscience pipeline. The company already has a significant exposure in the epilepsy space with its marketed drug, Epidiolex, which is expected to achieve blockbuster status this year. What differentiates Epidiolex from other epilepsy treatments is that it remains the only FDA-approved therapy containing a purified drug substance derived from marijuana.

The addition of SAN2355 indicates that Jazz is preparing for the next wave of innovation in epilepsy, potentially positioning the drug as a successor to Epidiolex once it loses exclusivity, while reinforcing the company’s long-term strength in the neuroscience market.

Notably, Saniona initiated manufacturing and toxicology studies on SAN2355 with funds secured from its deal with Acadia Pharmaceuticals ACAD last year. Under the terms of that agreement, Acadia acquired exclusive rights to the essential tremor candidate SAN711 for $28 million upfront, with the potential value of the transaction reaching up to $600 million through development, regulatory and commercial milestone payments.

Jazz Pharmaceuticals PLC Price

 

Jazz Pharmaceuticals PLC price | Jazz Pharmaceuticals PLC Quote

JAZZ’s Zacks Rank

JAZZ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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