Jazz Pharma, Sumitomo Pharma Ink Licensing Pact For Sleeping Disorder Candidate

Jazz Pharmaceuticals plc JAZZ has acquired development and commercialization rights in the U.S., Europe, and other territories for Sumitomo Pharma's investigational DSP-0187.
DSP-0187 is a potent, highly selective oral orexin-2 receptor agonist with potential application for treating narcolepsy, idiopathic hypersomnia, and other sleep disorders.
Jazz has designated this molecule JZP441.
Sumitomo Pharma initiated a Phase 1 trial in Japan of DSP-0187 in November 2021 to evaluate the safety, tolerability, and pharmacokinetics in healthy volunteers.
DSP-0187 is initially planned to be evaluated in patients with narcolepsy.
Sumitomo Pharma will retain all development and commercialization rights in Japan, China, and other Asia/Pacific countries and regions.
It will receive an upfront payment of $50 million and is eligible to receive development, regulatory, and commercial milestone payments of up to $1.09 billion.
Pending approval, Sumitomo Pharma is eligible to receive a tiered, low double-digit royalty on Jazz's net sales of DSP-0187.
Price Action: JAZZ shares are down 4.24% at $150.76 during the market session on the last check Thursday.