Jazz Pharmaceuticals plc JAZZ has completed the divestiture of Sunosi (solriamfetol) in the U.S. to Axsome Therapeutics, Inc. AXSM.
Under the terms of the agreement, Jazz received an upfront payment of $53 million, and will receive a high single-digit royalty on Axsome's U.S. net sales of Sunosi in current indications and a mid-single-digit royalty on Axsome's U.S. net sales of Sunosi in future indications.
Axsome said earlier that it expects to finance the transaction via its existing $300 million term loan facility with Hercules Capital Inc.
Why It Matters?
"The divestiture of Sunosi enables us to sharpen our focus on the strategic areas where we see the most opportunity for sustainable growth and enhanced shareholder value," Bruce Cozadd, chairman and CEO of Jazz Pharmaceuticals, said.
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.
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.
Cozadd said that the Dublin-based company will continue to invest in "our highest strategic priorities, driving the transformation of Jazz to an innovative, global biopharmaceutical leader, and delivering improved top- and bottom-line growth through operational excellence."
Subject to the satisfaction of conditions to closing, the ex-U.S. transaction is expected to close within 60 days.
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