DUBLIN—Jazz Pharmaceuticals plc has announced the acquisition of Cavion Inc., a clinical-stage biotechnology company, through a merger with a Jazz subsidiary. Under the terms of the agreement, the former Cavion shareholders receive an upfront payment of $52.5 million and have the potential to receive additional payments of up to $260.0 million upon the achievement of certain clinical, regulatory and commercial milestones, for a total potential consideration of $312.5 million.
Cavion, now a wholly-owned subsidiary of Jazz, creates therapies aimed at modulating the T-type calcium channel for the treatment of chronic and rare neurological diseases. Cavion’s lead molecule, CX-8998, has been evaluated in a Phase 2 randomized, placebo-controlled clinical study in patients with essential tremor. It is the most advanced late-stage small molecule currently in development for essential tremor.
“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,” said Robert Iannone, M.D., M.S.C.E., executive vice president, research and development of Jazz Pharmaceuticals. “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.”
CX-8998 was evaluated in the T-CALM Study, a clinical study of 95 patients with essential tremor conducted at 25 sites across the United States. Patients were randomized to one of two treatment arms, receiving either placebo or CX-8998. The study demonstrated proof-of-concept, supporting continued development of CX-8998 as a potential treatment for essential tremor. Results from the Phase 2 study were presented at the American Academy of Neurology in May 2019.
“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,” mentioned Andrew Krouse, president and chief executive officer of Cavion.
Jazz Pharmaceuticals hosted an investor conference call and live audio webcast today at 5:00 p.m. EDT/10:00 p.m. IST to discuss the acquisition. An archived version of the webcast will be available for at least one week in the Investors section of Jazz Pharmaceuticals’ website.