Jazz Pharma in $397 million deal with Aerial for narcolepsy drug ADX-NO5

Ireland-headquartered drugmaker Jazz Pharmaceuticals (Nasdaq: JAZZ) has inked an agreement with the USA’s Aerial BioPharma to acquire rights to ADX-N05, a novel compound in clinical development by Aerial for the treatment of excessive daytime sleepiness in patients with narcolepsy.

Under the deal, a subsidiary of Jazz Pharmaceuticals has acquired worldwide development, manufacturing and commercial rights to ADX-N05, other than in certain countries in Asia where SK Biopharmaceuticals retains rights. Under the agreement, Aerial will receive an upfront payment of $125 million. Aerial and SK are eligible to receive milestone payments based on development, regulatory and sales milestones and tiered royalties based on potential future sales, which could make the accord worth as much as $397 to Aerial.

Targeted investment to expand pipeline