Axsome Therapeutics Acquires AstraZeneca's Epilepsy Candidate in $83 Million Deal

Axsome Therapeutics has made a significant move in the epilepsy treatment space, acquiring AstraZeneca's phase 2 oral GABA receptor modulator through a subsidiary acquisition. The deal, potentially worth over $83 million, marks Axsome's entry into the epilepsy market and bolsters its central nervous system (CNS) portfolio.

Acquisition Details and Financial Terms

Axsome has acquired Avenue Therapeutics' subsidiary, Baergic Bio, in a strategic move to gain control of BAER-101, now renamed AXS-17. The upfront payment for Baergic is $300,000, with additional milestone payments structured as follows:

• $2.5 million for the first indication's development and regulatory milestones
• $1.5 million for each subsequent indication
• Up to $79 million in sales milestones
• Potential royalties on future sales

This acquisition grants Axsome 100% equity in Baergic Bio and worldwide rights to the development, manufacturing, and commercialization of AXS-17.

Strategic Implications and Pipeline Expansion

The addition of AXS-17 to Axsome's portfolio represents a significant expansion of the company's CNS research pipeline. Herriot Tabuteau, M.D., CEO of Axsome, emphasized the strategic importance of this acquisition, stating, "This transaction adds AZD7325, an earlier stage molecule with a differentiated mechanism of action, to our leading late-stage CNS portfolio."

Axsome plans to initiate preparations for phase 2 epilepsy studies of AXS-17 in 2026, demonstrating the company's commitment to advancing the candidate's development. This move into epilepsy treatment addresses an urgent need for innovative options in an area where patient demand for new therapies remains high.

Axsome's Evolving Portfolio and Recent Challenges

While this acquisition strengthens Axsome's pipeline, it comes at a time when the company has faced recent setbacks. In June, the FDA refused to review a new drug application for Axsome's fibromyalgia candidate, originally licensed from Pfizer in 2020. The regulatory body deemed one of the supporting trials insufficiently rigorous, prompting Axsome to initiate a new phase 3 study.

Axsome's portfolio currently includes three approved medicines for depression, migraine, and excessive daytime sleepiness. The company is also developing AXS-12 (reboxetine), another former Pfizer asset with a complex history, for narcolepsy treatment. This diversification into epilepsy with AXS-17 represents Axsome's strategy to expand its CNS focus and potentially mitigate risks associated with individual pipeline candidates.