Axsome Acquires Sleep Disorder Drug From Jazz Pharma, Expanding Its Neuroscience Portfolio

Axsome Therapeutics Inc AXSM has agreed to acquire Sunosi (solriamfetol) from Jazz Pharmaceuticals Plc JAZZ

• Jazz will receive from Axsome a total upfront payment of $53 million.
• Axsome expects to finance the transaction via its existing $300 million term loan facility with Hercules Capital Inc.
• Sunosi is 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).
• Sunosi was approved by the FDA in 2019 and by the European Medicines Agency (EMA) in 2020. 
• Sunosi net sales were $57.9 million in 2021, up 104% Y/Y. 
• Sunosi complements Axsome's existing neuroscience portfolio led by AXS-05 for major depressive disorder (MDD) and AXS-07 for migraine, both of which are undergoing NDA reviews with anticipated FDA actions this year. 
• Based on further growth potential in the current indication, and potential new indications, the Company estimates a peak revenue potential of greater than $1 billion for Sunosi.
• Sunosi will be immediately revenue-generating upon closing and is expected to be breakeven to Axsome's operating plan in 2023 and substantially accretive after that.
• Price Action: AXSM shares are up 2.12% at $36.11 during the premarket session on the last check Monday. JAZZ shares closed 0.68% higher at $160.70 on Friday.