Jazz Pharmaceuticals acquisition of Cavion : Irish pharma company Jazz Pharmaceuticals has acquired US-based clinical-stage pharma company Cavion, a developer of essential tremor drugs, in a deal worth up to $312.5 million as per the latest pharma acquisition news.
Based in Cambridge, Massachusetts, Cavion is engaged in developing therapies aimed at regulating the T-type calcium channel for the treatment of chronic and rare neurological disorders.
The lead molecule of the US pharma company – CX-8998, has been assessed in a phase 2 clinical trial in patients with essential tremor. The mid-stage clinical trial demonstrated proof-of-concept, supporting the continued development of the molecule as a possible treatment for essential tremor.
Commenting on Jazz Pharmaceuticals acquisition of Cavion, Robert Iannone – Jazz Pharmaceuticals research and development executive vice president, said: “We are excited to continue the development of Cavion’s lead asset, CX-8998, a first-in-class small molecule, for the potential treatment of essential tremor, a prevalent and disabling movement disorder.
“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.”
As per the terms of Jazz Pharmaceuticals acquisition of Cavion, shareholders of the US pharma company get an upfront payment of $52.5 million. Further, they will be entitled to be paid up to $260.0 million based on the achievement of some clinical, regulatory and commercial milestones.
Andrew Krouse – president and CEO of Cavion, commenting on Jazz Pharmaceuticals acquisition of Cavion, said: “Jazz shares Cavion’s passion to develop differentiated therapies for patients.
“We believe that Jazz Pharmaceuticals’ development and commercial expertise will help realize the value of CX-8998 as a treatment for patients with essential tremor.”
Hogan Lovells served as the legal advisor for Jazz Pharmaceuticals during the transaction. On the other hand, the financial advisor for Cavion was MTS Health Partners, its legal advisor was Cooley and its strategic advisor was Pilot Health Advisors.
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